Paying attention to the 4-hour chart, you will notice that:
- on Tuesday trading, the breakout of the mirror level of 1.2027 led to a noticeable but short-term strengthening of bullish sentiment, as a result of which our first alternative target (1.2084) was reached,
- At the level of 1.2091, a noticeable resistance formed for EURUSD, after which consolidation began.
Now let’s look at the indicators:
The currency rate is still below the moving averages with periods of 144, 34, 89 and 55, which are the range of resistance levels 1.2094 and 1.21125 / 14/155.
The MACD histogram is still in the negative zone, but already above its signal line, continues to grow intensively 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 again intensify in the forex market in this currency pair, it is necessary to wait for the breakdown of the resistance level 1.2091, which can open the way to the levels 1.21225, 1.2163 and 1.2182.
Otherwise, the consolidation may turn into an offensive bears, and their targets will be the levels 1.2027, 1.1991 and 1.19595.
Resistance levels: 1.2091, 1.2094, 1.21125 / 14/155, 1.21225, 1.2163, 1.2182
Current price: 1.2086
Support levels: 1.20665, 1.20525, 1.2027, 1.2005, 1.1991, 1.19595, 1.19515
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