EUR/USD Tests Key Level at $1.05825
2022.12.20 02:07
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Previous forecast talked about $1.05825 as a key level for the buyers and $1.07825 as a target.
The price started the week with an indecision candle where the price touched $1.05825 resistance and $1.05087 as a support level.
On Tuesday, the price formed a strong bullish candle that broke the $1.05825 resistance level and monthly resistance line. This breakout allowed the price to reach the $1.07300 level mentioned in the previous week’s analysis.
From there, the price formed a bearish engulfing candle because the sellers had entered the market, and the bulls exited their trades with profit.
This move returned the price down to the $1.05825 support line.
EURUSD 17.12.2022
EUR/USD Chart Forecast
The price is on the support level of $1.05825, which should hold so the price can move again to higher levels.
The price is on the previous confluence of resistance, and now that area is acting as a support.
Monday will show what will happen. Will the price stay above $1.05825 and prepare for the next move towards $1.07825, or will it close below and target the $1.05087 support level?
The weekly time frame shows $1.05825 is still not broken on the upside, so we need to wait until the market manages to close the week above.
Until then, we need to wait for the price to stay above $1.05825 on a daily time frame, or it will move down to $1.05825. The weekly time frame suggests a further move up, but we need confirmation on a daily time frame.
The monthly time frame still shows a potential move to $1.07825, but we have two weeks ahead where the price needs to find more bullish strength to move upwards.
If the price closes below $1.05087, this will be a sign the price is heading to the demand zone to $1.03920, where the bulls were strongest and where the price could find a base for the next move up toward $1.07825.
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