Breakdown of the 1.1889 level will open the EURUSD path to the 1.1840 and 1.1799 marks


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

  • at the auction last Friday, the breakdown of the level of 1.1951 led to another strengthening of bearish sentiment, and our first target (1.19245) was reached at the beginning of the European session; also note that in the second half of the day our second target was almost reached – 1.1889,
  • mirrored level 1.1927 now acts as a noticeable resistance for the euro (EUR),
  • from the early morning, bearish sentiments dominate in the EURUSD currency pair.

Now let’s look at the indicators:

  • The currency remains well below the moving averages with periods of 34, 55, 144 and 89, which are directed downward and indicate continued bearish sentiment (in the medium term), as well as a series of resistance levels 1.2023, 1.2075, 1.20795 and 1.2087.
  • The MACD histogram is still in the negative zone and below its signal line, continues to decline smoothly and thus gives a signal to sell the euro (EUR).
  • The Stochastic Oscillator is in the oversold zone and is not giving clear signals at the moment, since the% K line almost 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 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 mirror level 1.1889 (its the importance is better traced on the daily chart), which may open the way to the levels of 1.1840 and 1.1799.

Otherwise, the EUR / USD rate will move within the 1.1889 – 1.1927 price range.

An alternative (‘bullish’) scenario of the development of events will be ‘activated’ in the event of a breakdown of the mirror level 1.1927, after which the quotes may go to the levels of 1.1993 and 1.2027.

Resistance levels: 1.1927, 1.1951, 1.19765, 1.1993

Current price: 1.1901

Support levels: 1.18925, 1.1889, 1.1840, 1.1799

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