The correction was expected in our previous analysis, This is what happened in EURUSD, the price bounces from the support zone and closes above the support in a weekly time frame chart indicates a more bullish move.
We will look for further upside movement in our today analysis. I am sharing weekly and daily time frame technical thoughts below.
Weekly Time Frame Forecast
Weekly candle closing above the support zone indicating that the price could start in a bullish direction for next couple of days. The minimum target for the bullish move is 1.19067 and 1.20300 in the case of extension. It is also expecting the price may respect its support area, if EURUSD manages to hold its support zone then most probably we will see EURUSD in a range between 1.16100 to 1.2000 for next couple of days.
Weekly closing below the support zone may invalidate our bullish thought and could take price towards next bearish target 1.14421 however the chance of breaking the support is lower.
Please have a look at weekly time frame chart below; i have mentioned possible next chart pattern diagram and some target levels.
Weekly EURUSD Time Frame Chart
Daily EURUSD Forecast
It is expecting the EURUSD could move in a descending triangle formation for next few days.
If you don’t know what is descending triangle, please visit Investopedia.
Bouncing from the support zone and couple of bullish candles indicating the correction has already started and could take EURUSD towards the descending resistance level shown in the chart below.
The minimum target for the bullish move is 1.19067 and may extend towards 1.20332 which is also higher low resistance zone of a descending triangle.
Please have a look at daily time frame chart below to the trade idea.
Daily Time Frame EURUSD Chart
EUR USD SUPPORT & RESISTANCE LEVELS
Support 1: 1.16200
Support 2: 1.1550
Resistance 1 : 1.1906
Resistance 2 : 1.2000
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Note: Never risk more than 2% of your capital in a single trade and always trade with proper money management plan.