The price made a short impulse on the upper side reaching 1.33000 resistance level. The short impulse did not last long and in two days we have a price below the 1.32077 level which was a starting point since the last analysis.
In the previous analysis it was mentioned that we could see a bearish price action signal around 1.32077 and we can see a bearish Pin bar on the chart.
When the price returned from the upper side below 1.32077 price confirmed 1.32077 as a resistance with bearish Pin bar. That confirmation was a signal to enter into the trade.
Since the price formed a bearish price action signal we can see the price right on the support level 1.30968. This support held the price back for two weeks. It was a weak support so I am expecting the price to respect the support level for a short time.
The target is 1.29795 which is a stronger support where the price stopped in the last attempt to move lower.
From there we can expect a price bounce and reach 1.30968 as a resistance level and then continue to move down. To make that happen we need to wait for the price to close the day below current support ahead and that is 1.30968.
If you have entered into the trade on the bearish Pin bar, take profit is at 1.30150 which is the start of the demand zone. You can expect the price to bounce from that level as it has in the previous attempt to move down.
Frano is an engineer, author, forex trader and the owner of a blog where he teaches forex courses for beginners. Frano created a website on how to trade forex to share his knowledge, market analysis which is also published on forexFactory.com, investing.com and many other trading related websites.