Namaste to all #Hive and #Leo Finance community members🙏

Welcome all of you once again to my blog, where every Saturday we try to understand the price movement of EUR/USD currency pair for the next few days, that too purely based on #TechnicalAnalysis. And by the grace of lord Shri Krishna, every time till now our analysis has proved to be correct.🙏
Visit my profile to go through our last Saturday's analysis.

Image by freepik | Edited on canva

Important points that we talked about last Saturday are:

• structure of Friday August 25 daily candle was not 100% bearish. Even when it closed below the previous day's low, because it has a long lower wick which shows buying at the lower level. Also when you look at the chart at a shorter time frame you will see that on the same day most of the time the buyers dominated the sellers.
• But the continues lower-low lower-high structure on 4 hour time frame strengthen the current bearish trend. So, we will look for opportunities to sell when the price drops below the low of Friday August 25 which is around 1.07650.
• And we will consider buying only if the price sustains above 1.08450 that too with smaller quantity and proper and strict risk management.

Let us now take another dive into the EUR/USD forex chart and see where it could be headed in the coming week.

Image by tradingview

Above is the 1 Day time frame chart of EUR/USD currency pair.

In the picture shown above you can see the candle of 25th August and its range.
Now what we decided in our previous analysis was to buy above the high of Friday 25th august high and sell below the low of Friday 25th august.
In which we did not get any candle below the low of Friday 25th august but we get a #bullishbreakout on the higher side. However, that breakout did not prove to be sustainable and the prices fell again by the end of the week. And once again we have closed near the low of 25th August which is at around 1.07650.

There are 2 important things to note in the chart here:

• The price has fallen faster than it had gone up.
• And in this fall we did not see any rejection in the form of a candle wick.

Image by tradingview

Above is the 2 Hour time frame chart of EUR/USD currency pair.

Now the support level (1.07650) we discussed in our previous analysis becomes important then before. Mainly because, last week the buyers made a good effort to take the price above the same level. But the price fell twice as fast, which may now affect the psychology of market participants.
Which means if now this important support which you can see highlighted in the above image is broken, then further decline can be seen in this pair, which can take it down to 1.07355, 1.06950, 1.06720, and 1.06350.

You can also see the orange colored markings shown in the image above to understand how it may move on its possible path.

Image by tradingview

Above is the 2 Hour time frame chart of EUR/USD currency pair.

Conversely, if the buyers try to take the price higher again, I would wait for the price to break our important resistance level (1.08800) first. Then if I see any follow up movement in the same direction I will initiate buy order, after which my first 2 targets will be 1.09175 and 1.09450 which you can see in above image as R2 and R3. And If the price sustains above our second resistance then 1.09655, 1.09800 could be the next levels on the higher side.

To Summarize:
The support level we discussed in our previous analysis (1.07650) becomes important then before. Which means if now this support is broken, then further decline can be seen in this currency pair, which can take it down to 1.07355, 1.06950, 1.06720, and 1.06350.

Opposite of this. 1.08800 will be a key resistance level. If the price has to go up, then it will be very important to sustain above this level. After which my first 2 targets will be 1.09175 and 1.09450. If the price sustains above our second resistance then 1.09655, 1.09800 could be the next levels on the higher side.

No matter which direction the price moves, we need to confirm follow-up movement before placing any trade, which you can understand from the price structure and strong candlestick patterns.

Thank you for reading this blog.
आज के लिए बस इतना ही।🙏
Have a profitable week👍