Paying attention to the 4-hour chart, you will notice that:
- tonight, there was a surge in bullish sentiment in the EURUSD currency pair,
- the growth of quotations slowed down at around 1.2294, after which consolidation began,
- 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 55, 34, 89 and 144, which are directed upward and indicate continued bullish sentiment (in the medium term), as well as a series of support levels 1.2216, 1.22145, 1.21825 and 1.21245.
- The MACD histogram is still in the positive zone and above its signal line, continues to grow rapidly and thus gives a signal to buy the euro (EUR).
- Stochastic Oscillator is in the overbought zone and is giving a similar signal as the% K line rises above the% D line.
Despite two identical and clear signals, as a confirmation that bullish sentiments may again increase in the forex market in this currency pair, it is advisable to wait for the breakdown of the local max 1.2294, which may open the way to the levels 1.2350, 1.2413 and 1.2476.
Otherwise, a downward correction may begin, the targets of which will be the levels of 1.2248, 1.22055 and 1.2160.
Resistance levels: 1.2290, 1.2294, 1.2310, 1.2350, 1.2413
Current price: 1.2289
Support levels: 1.22745, 1.2258, 1.2248, 1.2241, 1.22265
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