As of writing, EUR/USD was trading near the level of 1.0735, moving within the long-term zone below key resistance levels of 1.0960 (144 EMA on the weekly chart), 1.1070 (200 EMA on the weekly chart) and the short-term zone below resistance levels of 1.0850 (200 EMA on the 4H chart), 1.0765 (200 EMA on the 1H chart).
The price found support at key support levels 1.0685 (200 EMA on the daily chart), 1.0700. It is premature to talk about the end of the medium-term downward trend. For that, the price needs to break through at least into the zone above the resistance levels 1.0765, 1.0800.
A breakdown of today’s low at 1.0672 could serve as a signal to open and increase short positions, with targets at support levels 1.0620, 1.0600.
A decisive breakdown of the local support level at 1.0520 would finally return EUR/USD to the zone of a global bearish market.
In an alternative scenario, EUR/USD would resume its growth. In this case, the first signal to enter long positions could be a breakout of the 1.0765 resistance level.
If the pair consolidates in this zone, the target levels of the upward move would be 1.0850, 1.0900. For a definitive breakthrough into the long-term bullish market zone, the pair would need a confirmed breakout of the resistance levels 1.1070, 1.1095.
In case of further growth, the target level becomes 1.1600 (200 EMA, 144 EMA on the monthly chart), separating the global bullish trend from the bearish one.
Support levels:1.0720, 1.0700, 1.0685, 1.0600, 1.0520
As of writing, EUR/USD was trading near the level of 1.0735, moving within the long-term zone below key resistance levels of 1.0960 (144 EMA on the weekly chart), 1.1070 (200 EMA on the weekly chart) and the short-term zone below resistance levels of 1.0850 (200 EMA on the 4H chart), 1.0765 (200 EMA on the 1H chart).
The price found support at key support levels 1.0685 (200 EMA on the daily chart), 1.0700. It is premature to talk about the end of the medium-term downward trend. For that, the price needs to break through at least into the zone above the resistance levels 1.0765, 1.0800.
A breakdown of today’s low at 1.0672 could serve as a signal to open and increase short positions, with targets at support levels 1.0620, 1.0600.
A decisive breakdown of the local support level at 1.0520 would finally return EUR/USD to the zone of a global bearish market.
In an alternative scenario, EUR/USD would resume its growth. In this case, the first signal to enter long positions could be a breakout of the 1.0765 resistance level.
If the pair consolidates in this zone, the target levels of the upward move would be 1.0850, 1.0900. For a definitive breakthrough into the long-term bullish market zone, the pair would need a confirmed breakout of the resistance levels 1.1070, 1.1095.
In case of further growth, the target level becomes 1.1600 (200 EMA, 144 EMA on the monthly chart), separating the global bullish trend from the bearish one.
Support levels:1.0720, 1.0700, 1.0685, 1.0600, 1.0520
Resistance levels: 1.0765, 1.0800, 1.0850, 1.0900, 1.0960, 1.1000, 1.1070, 1.1095
The material has been provided by InstaForex Company – www.instaforex.com
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