Paying attention to the 4-hour chart, you will notice that:
- at the auction last Friday, the strengths of the bulls and bears were approximately equal,
- already today, from early morning in the EURUSD currency pair, bullish sentiments dominate,
- at the moment the exchange rate is trying to gain a foothold above the mirror level 1.2177.
Now let’s look at the indicators:
- The currency rate is sandwiched between the moving averages with periods of 89 and 144 (resistance levels 1.21825 and 1.2200) on the one hand and averages with periods of 55 and 34 (support levels 1.2139 and 1.2125) on the other.
- The MACD histogram is still in the positive zone and above its signal line, continues to rise smoothly and thus gives a signal to buy the euro (EUR).
- The Stochastic Oscillator is near the border of the overbought area and is currently not forming clear signals, since the% K line almost crossed with the% D line.
Despite only one clear signal, we expect the bulls to advance further, with potential targets at 1.2217, 1.2241 and 1.22705.
The bullish scenario will be canceled if the currency rate returns below the mirror level of 1.2177, after which the bears may seize the initiative, and their targets will be the levels 1.21045, 1.2074 and 1.2053.
Let us remind forex traders that today ECB President Christine Lagarde:
- at 11:45 Moscow time. will deliver a speech at the conference ‘Green Banking and Green Central Banking: What are the Right Concepts?’ organized by the Goethe University Institute for Law and Finance, Frankfurt University,
- at 19:00 Moscow time. will take part in the High Level Leaders’ Virtual Discussion ‘Growth Recovery’ during the weekly agenda in Davos.
Unexpected statements can have a significant impact on the further course of trading.
Resistance levels: 1.21825, 1.2189, 1.2200, 1.22055, 1.2217, 1.2228, 1.2241, 1.22705, 1.2283
Current price: 1.2180
Support levels: 1.2177, 1.21635, 1.2151, 1.2139, 1.2125, 1.21045, 1.20925, 1.2074, 1.20615, 1.2053
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