In the last week, the EURUSD pair breached the critical support level at 1.03502 and created a new low in the market at 1.03372.Most of the professional traders were in long position in the market and those who have set their stop loss a little bit wider were saved from the false bearish break of the market. After hitting the 1.03372 level in the market the pair started its bullish correction in the market and first broke the resistance level at 1.04962.Though the retail traders were expecting low volatility in the market but the pair showed decent movement in the very beginning of the year 2017.Previously the pair has managed to trade well above this level in the market but the leading investors are thinking that the EURUSD pair will retrace to a great extent in the near future. Most importantly the weekly chart is also showing nice bullish price action signal to the traders which are a clear indication of a bullish reversal in the market.
The EURUSD pair showed a decent bullish correction in the last week and test a critical resistance level at 1.06228.During the last trading, Friday the U.S non-firm data came negative and pushed the dollar lower against its major rivals in the forex market. The forecasted data was 175k but the actual data was only 156k in the market. However, its effect was greatly mitigated in the forex market as the average hourly income increased by 0.4% in the market. To be precise on last Friday the dollar bulls took the control of the market and pushed all of its major rivals into the floor. In the upcoming week, the green bucks might exhibit strong bullish momentum in the market but leading investors are thinking that all the major rivals of the green bucks will again attempt a bullish recovery in the market. Currently, the EURUSD pair heading towards its critical support level at 1.05028 in the market and the professional traders will be looking for bullish price action signal in the market to execute their buy orders.
Daily chart analysis for the EURUSD pair
Figure: Technical parameter in the EURUSD pair
The EURUSD pair has erased almost 50 percent of its gain in the last trading Friday and currently heading towards the critical support level at 1.04994 in the market. This level is going to provide a significant amount of buying pressure to the EURUSD pair and the expert traders will be looking to buy this pair with bullish price action confirmation signal. On the other hand, the 24 period ADX index is exhibiting possible bullish crossover in the market. However, before the bullish crossover takes place in the market the leading expert is expecting more bearish pressure in the market in the beginning of the next week. If the support level at 1.04994 manages to restrict the bearish move of the EURUSD pair then the pair will challenge the critical résistance level at 1.08697.This level is going t provide a significant amount of selling pressure to the EURUSD pair and if the pair manages to breach this level then we will see the pair heading towards the next critical resistance level at 1.110292.On the other hand, if the green bucks retain its strength then the pair will break the current nearest support level at 1.04994.A clear break of this support level will ultimately lead this pair towards the next critical support level at 1.03372.From this level, the experts are expecting a nice bullish pullback in the EURUSD pair towards its first critical resistance level at 1.04994.All the professional price action traders will be cautiously monitoring this level for bullish price action signal in the market to enter long in the EURUSD pair.
Weekly chart analysis for the EURUSD pair
Figure: Weekly chart analysis for the EURUSD pair
In the weekly chart, we are now a seeing a bullish morning star pattern which experienced a false breakout in the last week. Many professional traders are thinking that the break is not false and the seller will take control over the market. But due to recent slip of the U.S dollar index investors are now confused about the ongoing strength of the U.S dollar. If the weekly support level at 1.03372 holds then the pair is most likely to rally towards the broken trend line support which has turned into resistance at 1.07132.This level is going to provide a significant amount of selling pressure to the EURUSD pair and most of the trend lovers will be waiting for the bearish price action signal to enter short in the EURUSD pair at that level. However, if the pair manages to break above that level then we will see a nice bullish correction in the EURUSD pair towards the sloping trend line resistance at 1.09529
Summary: Currently the EURUSD pair trading in a significant low region and showing a range movement in the market. The pair is now stuck within 1.03372 and 1.09529 level in the market. All the experts are waiting for the break out of this box region in the market but the aggressive traders are taking the advantage of range trading technique in the market. Though the pair is in long term bearish trend but the researchers are suggesting the green bucks will lose its strength in the near future. Considering all the technical and fundamental parameter the overall bias remains slightly bullish for the EURUSD pair and we will be looking to buy this pair with an extremely tight stop loss near the critical support level. Since we are trading against the long-term prevailing trend in the market it’s highly recommended to use price action signal before the execution of any trade in the market.