EUR/USD: A Trend Change On The Cards?

2022.10.24 08:34

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My previous forecast talked about the indecision area and the $0.96716 as a critical level for the sellers.

The price did not return and test the $0.96716, but it moved to the upside and tested the previous small resistance as a support level.

After testing, the price managed to move up and close the day above the previous daily candle close. This close indicated that the price managed to get above the key level for the bulls.

EUR/USD price chart.

EUR/USD Chart Forecast

Since the price managed to close the day above previous daily candles, this is an indication we will see the price higher. The price formed a large wick on Friday, but the buying pressure from the demand zone around $0.96716 has pushed the price higher.

The next level for the price is $0.99134, which is the next target in the coming week. The price will likely reach $0.99500, where the price has reached and bounced lower in attempts to break higher in the past.

After a breakout from the downtrend channel, the pair will be in the neutral trend, where we could look for buying signals. The $0.99134 level could be the first level for the bulls to change the market bias from selling to buying trends.

We need to see price testing the $0.99134 as a support level after the price closes the day above. This will be a good confirmation the price managed to move out from the downtrend.

But if we see the price inside the downtrend channel again, it will be back under the clasp of the bears.

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