Paying attention to the 4-hour chart, you will notice that:
- at the level of 1.21005 there was a noticeable resistance for the euro (EUR),
- since the afternoon of Wednesday, bearish sentiments dominate in the EURUSD currency pair,
- at the same time, the bears do not have enough strength to break through the strong support level at 1.20425.
Now let’s look at the indicators:
- The currency rate has noticeably moved away from the moving averages with periods of 144, 34, 89 and 55, which are a series of resistance levels 1.2092, 1.2098, 1.2110 and 1.2114.
- The MACD histogram is still in the negative zone and slightly above its signal line, but it started moving almost parallel to the time axis and is not giving clear signals at the moment.
- Stochastic Oscillator is in the neutral zone and is giving a signal to sell the Euro (EUR), as the% K line falls below the% D line.
Since trusting only one clear signal is extremely risky, and also due to the fact that the decline in quotations has slowed down, then as confirmation that bearish sentiments may increase in the forex market in this currency pair, it is necessary to wait for the breakdown of the strong support level of 1.20425, which could open the way to levels 1.1991, 1.19615 and 1.19245.
Otherwise, the bulls may seize the initiative, and their targets will be the levels 1.21005, 1.21225 and 1.2163.
Let us remind Forex traders that today at 20:05 Moscow time. Fed Chairman Jerome Powell will join the debate on the US economy at The Wall Street Journal’s Jobs Summit. Unexpected statements can have a significant impact on the further course of trading.
Resistance levels: 1.20695, 1.2092, 1.2098, 1.21005, 1.2110, 1.2114
Current price: 1.2050
Support levels: 1.20425, 1.2027, 1.2005, 1.1991, 1.19615, 1.19245
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