Paying attention to the 4-hour chart, you will notice that:
- from about the middle of the American session on Wednesday, bullish sentiments have been dominating in the EURUSD currency pair,
- there are no significant visible resistance levels.
Now let’s look at the indicators:
- The currency rate has significantly moved away from the moving averages with periods of 34, 55, 89 and 144, which are directed upwards and indicate continued bullish sentiment (in the medium term), as well as a series of support levels 1.2144, 1.2137, 1.2090 and 1.20045.
- The MACD histogram is still in the positive zone and is already above its signal line, continues to grow rapidly and thus gives a signal to buy the euro (EUR).
- Stochastic Oscillator has partially entered the overbought zone and is giving a similar signal, as the% K line rises above the% D line.
Therefore, we expect that the growth of quotations may continue, and the potential targets of the bulls are located at 1.2260, 1.2300 and 1.2320.
Cancellation of the ‘bullish scenario’ will occur in case of a breakdown of the mirror level 1.22055, which may open the way to levels 1.2166, 1.21365 and 1.2112.
Resistance levels: 1.2235, 1.2260, 1.2300, 1.2320
Current price: 1.2226
Support levels: 1.22055, 1.2166, 1.2144, 1.21365
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