The EUR/USD currency pair, on the H4 chart, was in a downtrend from the 20th of March until the 2nd of April. Buyers found the market attractive at 1.11837 and started countering selling pressure. The price broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator pierced the zero baseline, confirming a possible influx of demand that could cause upward pressure in the market.
On the 3rd of April the market made a higher top at 1.12547 and this might prove to be an important resistance level. Soon after the higher top at 1.12547, the bears temporarily managed to pull prices lower and a bottom was recorded at 1.12052 on the 4th of April. After the pullback a Hammer Candle formed and the 15 and 34 Simple Moving Averages crossed, forming a so-called Golden Cross, providing more confirmation to a possible technical reversal that might be in process.
Soon after however, sellers countered some of the buying pressure but they could not break the 1.12052 price level.
If the EUR/USD currency pair manages to breaks through the important resistance level at 1.12547, three possible price targets may be estimated from there. Attaching the Fibonacci tool to the top of the possible reversal at 1.12547 and dragging it to the bottom of the pullback at 1.12052, the following targets may be calculated. The first target can be anticipated at 1.12852 (161 %). The second price target can be projected at 1.13347 (261.8%) and the third and final target may be expected at 1.14147 (423.6%).
If the bottom at 1.12052 is however broken, the possible scenario is invalidated and needs to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the EUR/USD currency pair on the H4 time-frame will remain bullish.
On the 3rd of April the market made a higher top at 1.12547 and this might prove to be an important resistance level. Soon after the higher top at 1.12547, the bears temporarily managed to pull prices lower and a bottom was recorded at 1.12052 on the 4th of April. After the pullback a Hammer Candle formed and the 15 and 34 Simple Moving Averages crossed, forming a so-called Golden Cross, providing more confirmation to a possible technical reversal that might be in process.
Soon after however, sellers countered some of the buying pressure but they could not break the 1.12052 price level.
If the EUR/USD currency pair manages to breaks through the important resistance level at 1.12547, three possible price targets may be estimated from there. Attaching the Fibonacci tool to the top of the possible reversal at 1.12547 and dragging it to the bottom of the pullback at 1.12052, the following targets may be calculated. The first target can be anticipated at 1.12852 (161 %). The second price target can be projected at 1.13347 (261.8%) and the third and final target may be expected at 1.14147 (423.6%).
If the bottom at 1.12052 is however broken, the possible scenario is invalidated and needs to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the EUR/USD currency pair on the H4 time-frame will remain bullish.