- EUR/USD seems to have found a support at a key level.
- The pair trades above the simple moving average 30.
- A bearish trend line still works as resistance.
- Sellers may wait to go short upon price action around the trend line.
EUR/USD- Technical Analysis-H4 Chart
The pair has been bearish on the H4 chart for the last seven weeks. A bearish trend line has been driving the price towards the South. However, the price seems to have found its support at 1.06900. It consolidated there for a while and made a decent bullish move to make a breakout at the sma 30. As of writing, the pair traded above the moving average. Thus, the buyers may look to long on minor charts. Considering the H4 chart, the sellers may wait for the price to make a bullish correction and produce a bullish reversal pattern around the trend line’s resistance. It may attract the sellers to go short and drive the price towards the South again.
Price Action Analysis-H1 Chart
The chart shows that the pair has been bullish by obeying a trend line. Since the H4 chart has been on a correction, so the H1 chart has enough space towards the North to travel. The buyers may look to go long on the pair from the value areas. 1.07350 seems to be a good level to hold the price as a support and push the price towards the upside upon producing a bullish reversal pattern. The price may find its next resistance around 1.08000.
On the other hand, the sellers may want to wait to go short considering the H1 chart. A bearish breakout at the trend line may change the scenario. However, considering H4 and H1 charts’ price action it does not seem to happen. The price may rather go towards the North and find its solid resistance to attract more sellers to drive the price towards the downside.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn