EUR/USD Changes Trend, $0.99134 Decisive
2022.10.31 17:18
Previous forecast discussed potential market change because the price could go outside the downtrend.
And that happened on Tuesday when the price managed to get out from the downtrend channel. The price closed above $0.99134, the resistance level and supply zone holding the price for a while.
The breakout was confirmed on Wednesday when the second bullish candle formed and reached $1.00900. The second candle after a breakout is a confirmation candle. The breakout is valid, and the price has done on Wednesday.
The bulls went out from their trades on Thursday, and the sellers entered the trades. It was close to the supply zone, so the price returned to $0.99640.
The price did not return lower, breaking below $0.99134, but it remained above on Friday when we had an indecision candle. This indecision candle is a small confirmation the price is above a stable support level.
EUR/USD price chart.
EUR/USD Chart Forecast
The next week on Monday will be the last day of this month, an important day to watch. And the price is currently at the critical level where it has broken outside the downtrend.
So, if we see Monday close above the current price and stay above $0.99134, we will see prices at higher levels in the next few days and weeks.
The weekly time frame shows the price is in the bullish area, and it has free space to move to the $1.01368 resistance level. It is a daily and weekly supply zone, which is the next target for the price.
The daily time frame shows us that the price has free room to $1.00500 and then to $1.01368 as a weekly target.
Since the price managed to break out from the downtrend channel and we have confirmation of the breakout, there is a high chance of seeing the price at higher levels.
If Monday does not hold and the price returns below $0.99134, we will need to see if it will move again in the downtrend channel or if there will be a demand zone that will find more strength and push the price back up.
