Paying attention to the 4-hour chart, you will notice that:
- at the level of 1.2126, a strong resistance formed for the euro (EUR),
- for a long period of time, trades have been held with low volatility.
Now let’s look at the indicators:
- The currency remains well above the 34, 55, 89 and 144 moving averages, which are directed upward and indicate continued bullish sentiment (in the medium term), as well as a range of support levels 1.20845, 1.2064, 1.20175 and 1.1934.
- The MACD histogram is still in the positive area, but already slightly below its signal line, continues to decline very smoothly and thus gives an unclear signal to sell the euro (EUR).
- The Stochastic Oscillator is near the overbought zone and is not currently forming clear signals, since the% K line is moving almost parallel to the time axis, and has also almost crossed the% D line.
Despite only one vague signal, we expect that the pressure on the euro (EUR) may increase, and potential bearish targets are located at 1.20895 and 1.2056.
Cancellation of the ‘bearish scenario’ will occur in case of a breakdown of the strong resistance level 1.2126, which may open the way to levels 1.2167 and 1.22055.
Resistance levels: 1.2126, 1.2141, 1.2149, 1.2167, 1.2183, 1.22055, 1.22425
Current price: 1.2116
Support levels: 1.21145, 1.21015, 1.20895, 1.20845, 1.2067 / 64, 1.2056, 1.20455
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