The EURUSD pair has found some decent support in the market after hitting the critical support level at 1.05179.After the U.S presidential election, the dollar has become broadly stronger against it major rivals in the market and the EURO has become the first victim of the dollar strength. On Sunday the Italian Constitution Amendment Vote favored the EURO to a certain extent and we are seeing a decent possibility of a bullish correction in the EURUSD pair till the FOMC meeting minutes of December. The fed is most likely to hike their interest rate in the month of December and if the FED comes up with a hawkish hike then we will see a now low in the EURUSD pair. However, the EURUSD pair has always managed some fresh buyers in the market after hitting the critical support zone in the market. The recent ongoing performance of the U.S economy is pretty strong and investors are in fear that the EURO will collapse furthermore in the near term future. According to the FED rate hike monitor tools, there is 91.3% possibility of a rate hike in the month of December. However, the EURO might get significant strength in the market if ECB president Mario Draghi comes up with a QA program in the recent days. Currently, the pair trading in a critical level and the investors are in fear about the next move of the EURUSD pair. If the current support level holds in this week we might see a nice bullish correction in the EURUSD pair towards the next critical resistance level 1.08421.This level is going to provide a significant amount of selling pressure to the EURUSD pair and professional traders are waiting patiently to entering short at that price level with bearish price action confirmation signal.
Daily chart analysis for the EURUSD pair.
Figure: Technical parameter in the EURUSD pair
The EURUSD pair has corrected to a certain extent in the last week after hitting the critical support level at 1.05179.In the daily chart, there has also been a bullish price action confirmation signal in the last week but traders are in fear to enter long into this pair since the selling pressure is extremely high at the current moment. Last week the price closed well above the 8 days EMA and traders are considering this a sign of a bullish correction in the pair. However, we need a strong bullish candle in the upcoming week in order to confirm the bullish move in the EURUSD pair. If the pair manages to breach the dynamic resistance level 1.07199 then we will see a strong bullish correction in the pair towards the next critical resistance level at 1.08421.This level is going to play important role in the next movement of the EURUSD pair since with valid break of that resistance level the pair will head towards the next critical resistance level at 1.11403
There has been a decent bullish price action scenario in the daily chart but in the last Friday, we have Doji formation on the daily chart. If we have bearish opening in the next week then the pair will lead towards the critical support level at 1.05179.However the daily stochastic indicator is still not in the overbought region which suggests us the pair is not ready to fall again the market. However, a clear decisive break of the support level at 1.05179 will bring strong selling pressure in the market which will ultimately lead the pair towards the next critical support level at 1.05300.From that level, we might see a decent bullish bounce in the EURUSD pair but the sellers will most likely to win again and drive the price back towards the next support level at 1.04538.
Weekly chart analysis for the EURUSD pair
Figure: Weekly chart analysis for the EURUSD pair
There has been a nice bullish morning star price bullish price action signal formed on the weekly chart in the EURUSD pair towards the critical support level at 1.05179.Professional price action traders are cautiously waiting for some bearish retracement in the EURUSD pair to enter long at the best possible price in the market. They have set their stop loss just below the 1.05179 mark. The first initial bullish target for the EURUSD pair in the weekly chart is the critical resistance level at 1.08499.Professional price action trader will book half of their profit if the price reach at that level and they will use the trailing stop loss features to maximize their profit in the market. The weekly stochastic is perfectly in the oversold region which also suggest us that the pair is ready for its bullish correction in the upcoming week. However, for long entry, we must be extremely careful since the current bearish pressure is extreme in the EURUSD pair.
Summary: The EURUSD pair is showing some nice bullish price action confirmation signal in the daily and weekly chart. Professional price action traders have already entered long in this pair near the price 1.05642 after the formation of bullish morning star pattern on the daily chart. Considering all the parameter and fundamental factors the EURO is in slightly bullish mode in the current situation. Those who have not entered long in the EURUSD pair might get a second chance to execute their long orders in the market since we are expecting some selling pressure in the market.AS professional trader when you enter a long trade in the EURUSD pair you should use very low risk since you are trying to pick the bottom of the pair.