Paying attention to the 4-hour chart, you will notice that:
- from Monday afternoon, bullish sentiments dominate in the EURUSD currency pair,
- the growth of quotations slowed down when approaching the mirror level of 1.2083.
Now let’s look at the indicators:
- The exchange rate is sandwiched between the moving averages with periods of 89 and 144 (resistance levels 1.2094 and 1.2127) on the one hand and averages with periods of 55 and 34 (support levels 1.20625 and 1.2028) on the other.
- The MACD histogram crossed the zero line from the bottom up tonight, is now in the positive zone and above its signal line, continues to grow rapidly and thereby 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 grow again in the forex market in this currency pair, it is necessary to wait for the breakdown of the mirror level 1.2083, which can open the way to the levels 1.21295, 1.2162 and 1.2189.
Otherwise, the currency rate will move within the price range of 1.20585 – 1.2083.
An alternative (‘bearish’) scenario of the development of events will be ‘activated’ in case of a breakdown of the mirror level of 1.20585, after which the quotes may decline to the levels of 1.20275, 1.2003 and 1.19595.
Resistance levels: 1.2083, 1.2094, 1.20985, 1.2127, 1.21295, 1.2146, 1.2162, 1.2180, 1.2189
Current price: 1.2076
Support levels: 1.20625, 1.20585, 1.2046, 1.20365, 1.20275, 1.2016, 1.2003, 1.19835, 1.19595
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