Paying attention to the 4-hour chart, you will notice that:
- For almost the entire American session on Tuesday, as well as today at trading in Asia, bullish sentiments dominated in this currency pair, as a result of which our first two alternative targets (1.2181 and 1.22125) were worked out,
- mirrored level 1.2217 now acts as a significant resistance for EURUSD.
Now let’s look at the indicators:
- The currency rate is sandwiched between the moving averages with periods of 89, 34 and 55 (a range of resistance levels 1.22345, 1.2236 and 1.2249) on the one hand and the average with a period of 144 (support level 1.2207) on the other.
- 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 increase in the forex market in this currency pair, it is necessary to wait for the breakdown of the mirror level 1.2217, which can open the way to the levels 1.2241, 1.22705 and 1.2298.
Otherwise, the bears may seize the initiative, and their targets will be the levels 1.2160, 1.21385 and 1.2100.
Let us remind Forex traders that today they should pay attention to a number of important events that can have a significant impact on the further course of trading:
- at 12:00 Moscow time. ECB President Christine Lagarde will participate in an online Q&A discussion during the Reuters Next event.
- at 16:30 Moscow time. US inflation data will be released.
Resistance levels: 1.2217, 1.2228, 1.22345, 1.2236, 1.2241, 1.2249, 1.22705
Current price: 1.2212
Support levels: 1.2207, 1.22055, 1.2181, 1.21665, 1.2160, 1.21385, 1.2121, 1.2100
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