The EUR/USD currency pair, on the H4 time-frame, was in a range with no clear market direction from the 2nd of May when a top was recorded at 1.12191. Neither demand nor supply could build any momentum with buyers and sellers in balance. This was confirmed when the price oscillated around the 15 and 34 Simple Moving Averages as well as the Momentum Oscillator that oscillated around the zero baseline. On the 9th of May the price broke out of the range and although it close underneath the breakout during the same candle, demand started overwhelming supply with a possible critical resistance level forming on the 10th of May at 1.12545.
Currently sellers are trying to pull the price back towards the resistance turned support level at 1.12185.
If the bulls however manage to regain control of the EUR/USD currency pair and demand overcome supply, three possible price targets may be estimated if the price breaks through the possible critical resistance level at 1.12545. Attaching the Fibonacci tool to the 1.12545 level and dragging it to the resistance turned support level at 1.12185, the following targets may be calculated. The first target can be anticipated at 1.12767 (161.8%). The second price target can be projected at 1.13127 (261.8%) and the third and final target might be expected at 1.13710 (423.6%).
If the bottom at 1.12185 is broken, the possible scenario is invalidated and will need to be re-evaluated.
As long as buyers can maintain a positive sentiment and demand overcomes supply, the outlook for the EUR/USD currency pair on the H4 time-frame will remain bullish.
Currently sellers are trying to pull the price back towards the resistance turned support level at 1.12185.
If the bulls however manage to regain control of the EUR/USD currency pair and demand overcome supply, three possible price targets may be estimated if the price breaks through the possible critical resistance level at 1.12545. Attaching the Fibonacci tool to the 1.12545 level and dragging it to the resistance turned support level at 1.12185, the following targets may be calculated. The first target can be anticipated at 1.12767 (161.8%). The second price target can be projected at 1.13127 (261.8%) and the third and final target might be expected at 1.13710 (423.6%).
If the bottom at 1.12185 is broken, the possible scenario is invalidated and will need to be re-evaluated.
As long as buyers can maintain a positive sentiment and demand overcomes supply, the outlook for the EUR/USD currency pair on the H4 time-frame will remain bullish.
Trade closed: stop reached:
This trade was engaged and then stopped out ... it is very important to protect your account with every single trade ... it is not nice to wake up and find your account is gone ... it can ruin your whole day.