Paying attention to the 4-hour chart, you will notice that:
- for most of the European session on Wednesday, the EURUSD currency pair was dominated by bearish sentiments, as a result of which our targets (1.2128, 1.21045 and 1.2074) were fulfilled,
- after a short correction, pressure on the single European currency (EUR) resumed.
Now let’s look at the indicators:
- The currency has consolidated well below the moving averages with periods of 55, 34, 89 and 144, which are now a series of resistance levels 1.2128, 1.2143, 1.2151 and 1.21905.
- The MACD histogram crossed the zero line from top to bottom yesterday afternoon, is now in the negative zone and below its signal line, continues to decline intensively and thereby gives a signal to sell the euro (EUR).
- Stochastic Oscillator headed towards the oversold zone and is giving a similar signal, as the% K line goes below the% D line.
Therefore, we expect that the pressure on the euro (EUR) may persist, and the potential targets of the bears are located at 1.2053, 1.20025 and 1.1963.
Cancellation of the ‘bearish scenario’ will occur in case of a breakdown of the mirror level 1.21045, which may open the way to levels 1.2162, 1.2180 and 1.2217.
Resistance levels: 1.21045, 1.2128, 1.2143, 1.2151, 1.2162, 1.2180
Current price: 1.2088
Support levels: 1.2074, 1.20615, 1.2053, 1.20395, 1.20025, 1.1963, 1.19245
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