Paying attention to the 4-hour chart, you will notice that:
- at the auction last Friday, the breakdown of the strong support level 1.2241 led to a noticeable strengthening of bearish sentiment, and our first target (1.22055) was reached during the American session; early this morning the quotes were very close to our second target – 1.2160,
- the decline in EURUSD quotes began to slow down as it approached the strong support level of 1.2160.
Now let’s look at the indicators:
- The currency has consolidated below the moving averages with periods of 144, 89, 55 and 34, which are now a series of resistance levels 1.2203, 1.22435, 1.22635 and 1.22665.
- The MACD histogram is still in the negative zone and below its signal line, continues to decline intensively and thus gives a signal to sell the euro (EUR).
- Stochastic Oscillator is in the oversold zone and is giving a similar signal, as the% K line falls below the% D line.
Despite two identical and clear signals, as a 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 1.2160, which can open the way to the levels 1.2121, 1.2100 and 1.20775.
Otherwise, the bulls may seize the initiative, and their targets will be the levels 1.22055, 1.2241 and 1.22705.
Let us remind Forex traders that today at 17:40 Moscow time. ECB President Christine Lagarde will moderate the panel discussion during the One Planet Summit 2021 in Paris. But since the text of the speech will not be published, this event is unlikely to have a strong impact on the further course of trading.
Resistance levels: 1.2177, 1.2191, 1.2203, 1.22055, 1.2228
Current price: 1.2170
Support levels: 1.2160, 1.21385, 1.2121, 1.2100, 1.20775
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