EURUSD bears stumbled over strong support level 1.21385

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

  • For most of the European and American sessions on Wednesday, the EURUSD currency pair was dominated by bearish sentiment, as a result of which our first two alternative targets (1.2160 and 1.21385) were reached,
  • already today, from early morning, the bearish pressure resumed, but they still lack the strength to break through the strong support level of 1.21385.

Now let’s look at the indicators:

  • The currency has consolidated well below the moving averages with periods of 144, 34, 89 and 55, which are now a series of resistance levels 1.22085, 1.22105, 1.2231 and 1.22355.
  • The MACD histogram is still in the negative zone, but crossed with its signal line and is not giving clear signals at the moment.
  • Stochastic Oscillator has come very close to the oversold zone and is giving a signal to sell the Euro (EUR), as the% K line falls below 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 increase in the forex market in this currency pair, it is necessary to wait for the breakdown of the strong support level 1.21385, which could open the way to levels 1.2112, 1.20775 and 1.20395.

Otherwise, the currency rate will move within the price range 1.21385 – 1.21655.

An alternative (‘bullish’) scenario of the development of events will be ‘activated’ in the event of a breakdown of the strong resistance level 1.21655, after which the quotes may go to the levels 1.2217, 1.2241 and 1.22705.

We remind forex traders that today at 20:30 Moscow time. Fed Chairman Jerome Powell will participate in the panel discussion live at an event hosted by Markus Brunnermeier (Director of the Bendheim Center for Finance at Princeton University). Unexpected statements can have a significant impact on the further course of trading.

Resistance levels: 1.2156, 1.21655, 1.2181, 1.22055, 1.22085 / 105, 1.2217

Current price: 1.2144

Support levels: 1.21385, 1.21315, 1.2112, 1.20775, 1.2058, 1.20395, 1.20025

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