Bears in EURUSD have stopped, but there is no talk about the return of bulls yet

Paying attention to the 4-hour chart, you will notice that:

  • For almost the entire last Friday, bearish sentiments dominated in the EURUSD currency pair, as a result of which our first two targets (1.2107 and 1.2081) were fulfilled,
  • there is significant support for the euro (EUR) at the level of 1.20615,
  • since the beginning of the current day, the strengths of bulls and bears are approximately equal.

Now let’s look at the indicators:

  • The currency has consolidated below the moving averages with periods of 144, 89, 55 and 34, which are now a series of resistance levels 1.21005, 1.2119, 1.21225 and 1.21445.
  • Last Friday, the MACD histogram crossed the zero line from top to bottom, is now in the negative zone and below its signal line, continues to decline intensively and thereby gives a signal to sell the euro (EUR).
  • The Stochastic Oscillator is in the oversold area and is currently not forming clear signals, since the% K line began to move almost parallel to the time axis, and also crossed with the% D line.

Since it is extremely risky to trust only one clear signal, and also due to the fact that the decline in quotations has slowed down, then as a confirmation that bearish sentiments may again increase in the forex market in this currency pair, it is necessary to wait for the breakdown of the support level 1.20615, which could open the way to levels 1.2033, 1.2003 and 1.19595.

Otherwise, the bulls may seize the initiative, and their targets will be the levels 1.21225, 1.2182 and 1.22115.

Let us remind Forex traders that today at 19:10 Moscow time. A pre-recorded video message from ECB President Christine Lagarde to the annual online event of the German Association for Small and Medium Enterprises (BVMW) will be released. Unexpected statements can have a significant impact on the further course of trading.

Resistance levels: 1.20835, 1.21005, 1.2119, 1.21225, 1.21445, 1.2163, 1.2182, 1.22115, 1.2219

Current price: 1.2075

Support levels: 1.20615, 1.20445, 1.2033, 1.20275 / 225, 1.2003, 1.19835, 1.19595, 1.19515

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The decline in EURUSD may continue with targets at 1.19835, 1.19595 and 1.19245