Paying attention to the 4-hour chart, you will notice that:
- mirrored level 1.2298 now acts as a significant support for the euro (EUR),
- from about the middle of the American session on Wednesday, bullish sentiments have been dominating in the EURUSD currency pair,
- at the same time, the growth of quotations began to slow down in the area of 1.23375 – 1.2349, where there is a noticeable resistance.
Now let’s look at the indicators:
- The currency rate has noticeably moved away from the moving averages with periods of 34, 55, 89 and 144, which are directed upward and indicate continued bullish sentiment (in the medium term), as well as a series of support levels 1.22815, 1.2253, 1.22355 and 1.2193.
- 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).
- Stochastic Oscillator has come close to 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 necessary to wait for the breakdown of the resistance level 1.23375, which can open the way to the levels 1.2380, 1.2413 and 1.2440.
Otherwise, the bears may seize the initiative, and their targets will be the levels 1.2298, 1.2241 and 1.22055.
Resistance levels: 1.23375, 1.2349, 1.2380, 1.2413, 1.2440
Current price: 1.2327
Support levels: 1.2298, 1.22885, 1.22815, 1.22715, 1.22565 / 53, 1.2241
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