Paying attention to the 4-hour chart, you will notice that:
- significant support for the euro (EUR) formed at the level of 1.2160,
- since the beginning of the current day, bullish sentiments dominate in the EURUSD currency pair,
- at the same time, the bulls do not have enough strength to break the mirror level 1.21905.
Now let’s look at the indicators:
- The currency rate is sandwiched between a moving average with a period of 34 (resistance level 1.2209) on the one hand and averages with periods of 55, 89 and 144 (a series of support levels 1.2181, 1.21575 and 1.2066) on the other.
- Last night, the MACD histogram crossed the zero line from top to bottom, is now in the negative zone and below its signal line, continues to smoothly decline and thus gives a signal to sell the euro (EUR).
- Stochastic Oscillator is in the neutral zone and at the moment is not forming clear signals, since the% K line began to move towards the% D line.
Despite the indicators, in our opinion, the most correct decision now is to focus on the mirror level 1.21905; if the bulls have enough strength to break it, then their further targets may be the levels 1.22295, 1.2267 and 1.2300.
Otherwise, the currency rate will move within the price range 1.2160 – 1.21905.
An alternative (‘bearish’) scenario will be ‘activated’ in the event of a breakdown of the support level 1.2160, which could open the way to levels 1.21365, 1.2112 and 1.20715.
Resistance levels: 1.21905, 1.22065, 1.2209, 1.22295, 1.2240, 1.22565, 1.2267, 1.2300
Current price: 1.2186
Support levels: 1.2181, 1.2160, 1.21575, 1.21365, 1.2121, 1.2112, 1.2096, 1.20715
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