EUR/USD Forecast: Bullish Sentiment In Creation
Frano Grgić | Jan 07, 2022 11:47PM ET
What we can see on the chart, compared to the previous week's analysis, is that the EUR/USD price retraced back to its previous range area and from there found support for the next move up.
The week started with a bearish candle and reached the $1.13094 resistance level where the price stayed for three days. Then on Friday, the price moved strongly up and closed the week again above the previous daily candle's close.
It was the second week in which the price has closed above the previous daily candle's close.
Based on this second week's price action, we now have more confirmation that the price will move up. EUR/USD is now in a channel where the $1,14000 level is highly possible. We could see price this coming week move around this level. $1.14748 would be the next strong resistance level, where we can expect the price to stall.
From the current price, at time of writing, $1.13613 up to the $1.14748 level is not that far. It is around 100 pips, which EUR/USD can move in a day, as it did with the last candle of this week which had over 70 pips' range.
Entry levels would be in a bullish direction since the market is shifting from bearish to bullish. All retracements like this one are good to look for when considering entry points that are next to support levels.
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