In the previous analysis, the 1.32077 level was a potential level for a bearish price action signal. The price could not reach that level, but the price reached the supply zone around 1.32077.
From there price formed a bearish engulfing bar closing the day below previous lows. That was a signal for a bearish move with 1.29795 as a target.
After two days of indecision and confirming 1.30968 as a future resistance, the price managed to reach 1.29795 in a pip. From there the price retraced back up where we see the price now forming an indecision candle.
The 1.297951.29795 support level is a strong level where the price will stay for a while. We could see the price reaching 1.30968 as a resistance level which is now a confluence of resistance.
Now, we have a price in the downtrend channel with an upper trendline as resistance. The price will find a strong selling pressure which could push the price even lower, below 1.29795.
Below we have 1.28803 as the next support where the price will stop, but to reach that level we need to see the price below the current strong support of 1.29795.
On the upper side, we have 1.32077 as a resistance level as the biggest obstacle for the bulls. The price will need to close above that level to switch from a bearish to bullish scenario.
The current market outlook suggests future bearish sentiment so I would focus to look for bearish trading opportunities.
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.