EUR/USD: Monthly Target is at $1.07825
Frano Grgić | Dec 03, 2022 12:09AM ET
Previous EUR/USD forecast talked about the $1.05825 level the price could reach, and the price reached a price level of $1.05400, which is close to the weekly resistance level.
The price formed a bearish Pin bar on a Monday, and the price returned close to $1.02669, the daily support level. The price did not stay for too long because the demand zone around $1.02669 pushed the price up on Wednesday with a strong bullish candle.
The price closed the day above $1.03920, which confirmed a previous week's breakout to the upside. For the next two days, the price formed bullish candles that took the price above $1.0500, which gives a bullish momentum confirmation that the price is on the rise.
We have monthly, weekly, and daily time frames suggesting the price will continue to move up. We have a monthly time frame that has closed the month above $1.03920, a monthly resistance. This move predicts a future move to the upside, and the next target for this month is $1.07825 as the next resistance for the price.
When the price reaches $1.07825, we can expect the price to make a retrace. The retrace could reach $1.05825. On the monthly time frame, we can see a downtrend resistance line around $1.05825, which could be a critical level for the price. If the price stays above this level in the monthly time frame, it will be a good sign for the bulls.
The weekly and daily time frames suggest the same levels in the coming week. The price needs to break above $1.05825 to confirm the monthly prediction, but that breakout to the upside could happen next week.
A bearish scenario for the price is not in the plan for now because the price has strong bullish momentum that does not show weakness. So, if the price stays above $1.03920, the price is in a bullish run, and it will reach higher levels.
If the price returns below $1.03920, the bulls are losing strength.
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