Paying attention to the 4-hour chart, you will notice that:
- at the level of 1.1823, a strong resistance formed for the euro (EUR),
- in the afternoon of Wednesday, bearish sentiments dominated in the EURUSD currency pair,
- fragile support for the euro (EUR) formed at 1.1789, after which consolidation began.
Now let’s look at the indicators:
- The currency remains markedly below the 34, 55, 89 and 144 moving averages, which are directed downward and indicate continued bearish sentiment, as well as a range of resistance levels 1.1840, 1.1869, 1.1886 and 1.1982.
- The MACD histogram is still in the negative zone and below its signal line, continues to decline smoothly 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 advisable to wait for the breakdown of the support level 1.1789, which may open the way to the levels 1.1737 and 1.17035.
Otherwise, the bulls may seize the initiative, and their targets will be the levels 1.1823 and 1.18735.
Resistance levels: 1.1823, 1.18355, 1.1840, 1.1860 / 69, 1.18735, 1.1886
Current price: 1.1790
Support levels: 1.1789, 1.17755, 1.1737, 1.1716, 1.17035
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