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EUR/USD Forecast: $0.99134 Is A Decision Level For The Bulls

Published 10/01/2022, 12:09 AM
Updated 07/09/2023, 06:32 AM
EUR/USD
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Previous EUR/USD forecast mentioned the price could reach $0.96000, a small support and demand zone where the price could stall. The price reached that demand zone and stopped, but it reached lower levels in the next two days with a reversal.

The price reversed from that demand zone and formed a strong bullish engulfing candle that took the price back to the downtrend channel resistance line, which is a small confluence of resistance with the supply zone at $0.98300.

On Friday, the price did not return, closing the day close on the $0.96716 support level, which indicated the strong bullish momentum holding the price on higher levels.

Friday's sell-off, where traders going out did not return, is the second signal that the bulls have taken the market and will target higher price levels.EUR/USD price chart.

We can expect a higher price above $0.99134, which is the first strong resistance. It is a level where the price will need to close the day above to break that resistance and take the price to higher levels.

We have a downtrend channel where the price could enter and where it will stall for a while to make a breakout to the upside.

On a weekly and monthly time frame, we have a price between support and resistance levels where a bullish scenario is likely in the short term. That means on the weekly time frame.

The weekly market overview shows the price could return and reach the $1.00600 level, which is a supply zone. It is a zone where the bulls had a hard time breaking above and changing the market overview a few weeks ago.

The monthly time frame shows we could see a price on a lower level, close to $0.94861. With daily, weekly and monthly overviews, we can see that daily and weekly analysis shows bullish momentum and monthly shows bearish.

So, we expect prices to reach higher levels than now this week.

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