Paying attention to the 4-hour chart, you will notice that:
- significant support for the euro (EUR) formed at the level of 1.22055,
- since about the American session on Monday, bullish sentiment has been dominating in the EURUSD currency pair,
- at the same time, the growth of quotations began to slow down when approaching the resistance level 1.2248.
Now let’s look at the indicators:
- The exchange rate has noticeably moved away from the moving averages with periods of 34, 55, 89 and 144, which are a number of support levels 1.2205 / 04, 1.2173 and 1.2109.
- The MACD histogram is in the positive zone and above its signal line, continues to rise smoothly and thereby gives a signal to buy the euro (EUR).
- Stochastic Oscillator headed towards 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 increase in the forex market in this currency pair, it is advisable to wait for the breakdown of the resistance level 1.2248, which can open the way to the levels 1.2267, 1.2300 and 1.2330.
Otherwise, the bears may seize the initiative, and their targets will be the levels 1.22055, 1.21755 and 1.2160.
Resistance levels: 1.2248, 1.22565, 1.2267, 1.2300, 1.2320 / 30
Current price: 1.2238
Support levels: 1.22265, 1.22055 / 05/04, 1.2191, 1.21755 / 73, 1.2160
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