Bulls in EURUSD are trying to seize the initiative

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

  • most of Thursday, as well as tonight, bearish sentiment dominated in the EURUSD currency pair, as a result of which our first two alternative targets (1.2298 and 1.2241) were worked out,
  • from the early morning, the bulls are trying to seize the initiative.

Now let’s look at the indicators:

  • The currency rate is sandwiched between moving averages with periods of 55 and 34 (resistance levels 1.2261 and 1.22795) on the one hand and averages with periods of 89 and 144 (support levels 1.22425 and 1.2200) on the other.
  • The MACD histogram has ‘uncertainly’ crossed the zero line from top to bottom, is now 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 practically at the border of the oversold zone and at the moment is not forming clear signals, since the% K line almost crossed with the% D line.

Since trusting only one clear signal is extremely risky, 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 strong support level 1.2241, which can open the way to levels 1.22055, 1.2160 and 1.2121.

Otherwise, the bulls will seize the initiative, and their targets may become the levels 1.2298, 1.23375 and 1.2380.

We remind forex traders that today at 16:30 Moscow time. important data on the US labor market will be published, which may have a significant impact on the further course of trading.

Resistance levels: 1.2261, 1.22695, 1.22795, 1.22885, 1.2298, 1.2330, 1.23375, 1.2349

Current price: 1.2258

Support levels: 1.22425, 1.2241, 1.2229, 1.22155, 1.22055, 1.2200, 1.2191, 1.21755, 1.2160

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