Paying attention to the 4-hour chart, you will notice that:
- at trading on Wednesday, the breakdown of the mirror level 1.19105 led to a significant but short-term surge in bullish sentiment, and the development of our first two ‘bullish targets’ (1.1957 and 1.1989) ended tonight,
- strong resistance for EURUSD remains at 1.1989,
- since the beginning of the current day, the bears’ counterattack continues.
Now let’s look at the indicators:
- The currency rate is sandwiched between moving averages with periods of 89 and 144 (resistance levels 1.1977 and 1.2032) on the one hand and averages with periods of 34 and 55 (support levels 1.1934 and 1.1918) on the other.
- The MACD histogram crossed the zero line from bottom to top tonight, is now in the positive zone and above its signal line, continues to rise 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.
Despite two identical and clear signals, as a confirmation that bullish sentiments may intensify in the forex market in this currency pair, it is necessary to wait for the breakdown of the strong resistance level of 1.1989, which can open the way to the levels 1.2027, 1.2053 and 1.21005.
Otherwise, the bears’ counterattack may continue, and their targets will be the levels 1.19105, 1.1881 and 1.18375.
We remind forex traders that today ECB President Christine Lagarde:
- at 11:00 Moscow time. will present a report at a hearing before the European Parliament’s Committee on Economic and Monetary Affairs (ECON),
- at 14:00 Moscow time. will deliver a speech at an online meeting with the delegation on women’s rights and equal opportunities for men and women of the French National Assembly.
In addition, at 18:55 Moscow time. A pre-recorded closing speech by Fed Chairman Jerome Powell at a conference hosted by the Committee on Payment and Market Infrastructures (CPMI) of the Bank for International Settlements (BIS) will be released.
Unexpected statements by these officials could have a significant impact on the further course of trading.
Resistance levels: 1.1977, 1.1989, 1.2005, 1.2027, 1.2032, 1.2053, 1.20695, 1.21005
Current price: 1.1959
Support levels: 1.1957, 1.19345, 1.1918, 1.19105, 1.1896, 1.1881, 1.1874, 1.18375
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