GKT - EURUSD Daily Chart Analysis


Price is back in the wedge pattern and it is on the support level. H4 chart closing price tells us that the price is gone down enough to make a test move back in the previous range area .

This could happen if price reverse back to the previous confluence level at 1.09371 and from there make a bearish price action signal .

On the daily chart we can see that the price have closed below previous bearish candle lows which suggest that the price could go more down.

Because of long price drop we could see pullback before trying moving more down.

Nice analysis! Thanks for sharing!

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Current H4 candle have managed to close above previous H4 candles close. Close is above resistance level, 1.09028 and it happened just after small H4 indecision candle.

This could mean we have possible break out from the small range where consolidation is. While daily trend line is just above we could see a little harder way up for the buyers.

We have now price bounced from the resistance line at 1.09860 where candles look like the bulls have much more strength.

Bounce has been realized with small bear candles which does not give to much confidence in the bear strength. That is why we should watch for the bullish price action signal.

Today we will see will the price make a pullback to 1.09860 level which now is acting as a support level. Price could make a pullback before trying to break above 1.10373 level.

Today is Friday and it is a day when I do not want to trade to much.

From this point price have a chance reaching next resistance level at 1.11091 if bulls can find strength.

There is also a chance we see price pulling back to the support level 1.10373 if the bulls move out from the market.

Bullish Pinbar that has appeared on the pullback after breaking channel trend line tells us that the price could find its way up.

Pinbar in this case acts as a confirmation of a break out, where the price could continue further up. In this case it is best to wait for the next candle to form and show us the current strength of the bulls.

From this points where the price is right now we should wait for bulls if they can manage to break weekly trend line reach resistance at 1.11871. If the can do that we could see price making pullback to weekly trend line and moving further up to 1.12321 level.
Bears have more job to do to regain the strength they had in previous weeks. Their first strong support is at 1.10755 level which must be broken before attacking support at 1.09860.

We need to wait for clear signal and as a first signal would be breaking out from this small range area.

Price currently looks very bullish even it is right on the confluence level. If the price does not break out more up we could see moving sideways and trying reaching 1.12366 level which was strong resistance in the past.