- EUR/USD has been choppy on the H4 chart.
- The pair has had its second bounce at a horizontal support.
- The SMA 30 has been working as a resistance on the other hand.
- The H1 chart is yet to find its direction.
EUR/USD- Technical Analysis- H4 chart
The chart shows that the pair consolidated around 1.00650 for a while and produced a bullish engulfing candle. It then seems to be moving towards the North gradually. The simple moving average 30 has been working as its resistance. If the price breaches the SMA 30, the buyers may look to go long in the pair upon having breakout confirmation followed by a bullish reversal pattern. The price may find its resistance around 1.07500.
On the contrary, if the price produces a bearish reversal pattern at the SMA 30, the sellers may keep their eyes on the pair to go short below 1.00650. In that case, the pair may find its support around 1.06000.
Price Action Analysis- H1 Chart
The chart shows that the pair has been traded around 1.06900. The level has been working as a strong level of resistance on the H1 chart. Thus, the buyers may wait for the price to breach the level to look for long opportunities. A price breach followed by a breakout confirmation may push the price towards the North with good momentum. It may find its resistance around 1.07150.
On the contrary, a strong bearish reversal candle may drive the price towards the South again. In that case, the sellers may consider 1.06650 to take their profit out. A bearish breakout may generate more bearish momentum and drive the price towards the downside. The prie may find its support around 1.06250.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn