Previous EUR/USD forecast talked about $1.07825 as a monthly target, and the price has taken the first step to avoid falling down and to continue moving upwards.
The price started to rise on Monday and reached the $1.05825 resistance level, where the price bounced, returned down, and closed the day below $1.05087. The price continued to move down but did not reach $1.03920.
That means the bulls have enough strength to keep the price at higher levels. After that, the price continued its move upwards, where the price closed Wednesday above $1.05087, and on Thursday, the move continued. The price reached $1.05825 again.
On Friday, the price bounced again from $1.05825, but we must remember that a Friday is when traders get out of their trading. So the bulls have gone out, and the price dropped slightly.
But, the price stopped above $1.05087, confirmed as a support level.
EUR/USD Chart Forecast
With $1.05087 as a support level, we could see a price between $1.05087 and $1.05825 because we have three resistance levels.
We have monthly downtrend resistance, weekly horizontal resistance, and daily uptrend resistance. These three resistance levels form a confluence of resistance that prevents the price from reaching higher levels.
This is one of the reasons why the price could stop for a while between these two levels.
We have a $1.05087 support level on a daily time frame and $1.03920 as a weekly support level. Since the price is above $1.03920, we are bullish, and the price will try to reach higher levels.
If the price moves above $1.05825, it will have an open road to $1.07825, the monthly and weekly resistance level. That is a supply zone where the sellers will push the price down, and the buyers will get out of their bullish trades.
