Paying attention to the 4-hour chart, you will notice that:
- at the auction last Friday, the breakdown of the strong resistance level of 1.20815 led to a noticeable strengthening of bullish sentiments, and the development of our targets (1.21195 and 1.21475) ended at the end of the European session,
- at the level of 1.2150, there was a noticeable resistance for the euro (EUR),
- Since the beginning of the current day, bearish sentiments have been dominating in the EURUSD currency pair.
Now let’s look at the indicators:
- The exchange rate has consolidated above the moving averages with periods of 34, 55, 89 and 144, which are now a range of support levels 1.2125, 1.20895, 1.2086 and 1.20565.
- Last Friday, the MACD histogram crossed the zero line from the bottom up, is now located in the positive area and above its signal line, continues to rise smoothly and thus gives a signal to buy the euro (EUR).
- Stochastic Oscillator is in the overbought zone and is forming an opposite signal, although it is not clear yet, since the% K line has just crossed the% D line from top to bottom, but has not yet begun to go below it.
Despite the conflicting signals provided by the indicators, we expect that the bearish offensive may continue, and their potential targets are located at 1.20815 and 1.20615.
Cancellation of the ‘bearish scenario’ will occur in case of a breakdown of the strong resistance level 1.2150, which may open the way to levels 1.21705, 1.22055 and 1.22425.
Resistance levels: 1.2150, 1.21705, 1.2181 / 83, 1.22055, 1.22425, 1.22695
Current price: 1.2132
Support levels: 1.2125, 1.20995, 1.20895, 1.2086, 1.20815, 1.20615, 1.2056
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