EURUSD: Weekly Forecast
Updated
EURUSD was range-bound last week and the price has returned to where it began.
While the 4-month resistance at 1.2170 has continued to reject the bulls, selling pressure is seen diminishing as higher lows were created, forming a rising channel.
EURUSD has turned bullish since the beginning of April 2021 after taking a sharp reversal at the bottom of a 1-year rising channel
As such, we will maintain a bullish stance and continue to look for buying opportunities.
Price of Interest:
Resistance - 1.2170 (4-months), 1.2250 (supply zone)
Support - 1.2090 (bottom of channel), 1.1980 (equilibrium)
While the 4-month resistance at 1.2170 has continued to reject the bulls, selling pressure is seen diminishing as higher lows were created, forming a rising channel.
EURUSD has turned bullish since the beginning of April 2021 after taking a sharp reversal at the bottom of a 1-year rising channel
As such, we will maintain a bullish stance and continue to look for buying opportunities.
Price of Interest:
Resistance - 1.2170 (4-months), 1.2250 (supply zone)
Support - 1.2090 (bottom of channel), 1.1980 (equilibrium)
Note
EURUSD is about to retest 1.2170 resistance but bullish momentum is building up steadily.In fact, it was already tested and the price has dipped but it was not able to continue and the price climbed even higher.
We now strongly believe that the price will be able to reach 1.22 this week.
Note
Just as forecast, EURUSD reached the supply zone with little pullbacks in the process.The supply zone also proved to be a strong resistance as the price started to retreat.
It is technically expected to retreat as it formed an AB=CD pattern at the same time it reached the supply zone.
Going forward, we have to wait for FOMC before we can better understand what's going to happen next.
But as of current, sellers seems sluggish and buyers may easily push the price higher again.
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