Paying attention to the 4-hour chart, you will notice that:
- since the American session on Wednesday, bullish sentiments have been dominating in the EURUSD currency pair,
- at the same time, the bulls do not have enough strength to break through the strong resistance level of 1.2175.
Now let’s look at the indicators:
- The currency rate has noticeably moved away from the moving averages with periods of 34, 55, 144 and 89, which are a number of support levels 1.21225, 1.2119, 1.2102 and 1.2100.
- The MACD histogram is still in the positive zone and slightly below its signal line, but it started to rise smoothly and thus indicates a possible strengthening of bullish sentiment.
- Stochastic Oscillator has come close to the overbought zone and is giving a buy signal for the euro (EUR), as the% K line rises above the% D line.
Since trusting only one clear signal is extremely risky, and also due to the fact that the growth of quotations has slowed down, as a confirmation that bullish sentiments may again increase in the forex market in this currency pair, it is necessary to wait for the breakdown of the strong resistance level of 1.2175, which can open the way to levels 1.2223, 1.22695 and 1.22935.
Otherwise, the bears may seize the initiative, and their targets will be the levels 1.2107, 1.2081 and 1.2033.
Resistance levels: 1.2175, 1.2179, 1.22055, 1.2223, 1.22695, 1.22935, 1.2323
Current price: 1.2174
Support levels: 1.2162, 1.21325, 1.21225, 1.2119, 1.2107, 1.2102, 1.2100, 1.20935
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