The EUR/USD currency pair, on the H4 chart, was in an upward path until 12th of April when a higher top was recorded at 1.13239. Supply pressure overwhelmed the demand in the market and the upward momentum was disrupted with lower tops forming.
After the high at 1.13239, the price subsequently broke through the 15 and 34 Simple Moving Averages with the Momentum Oscillator breaking the zero baseline, both confirming a possible technical reversal in progress. This scenario was further strengthened by the crossing of the 15 and 34 Simple Moving Averages, called a Death Cross, as well as three Strong Bearish Candles.
A possible critical support level formed when a lower bottom was recorded at 1.12263 on the 18th of April. Buyers tried to push the market higher but supply overcome demand with an Evening Star Candle forming at the turning point at 1.12637 on the 22nd of April.
If the EUR/USD currency pair breaks through the critical support level at 1.12263, then three possible price targets may be projected from there. Attaching the Fibonacci tool to the lower bottom at 1.12263 and dragging it to the top of the pullback at 1.12637, the following targets may be calculated. The first target can be anticipated at 1.12032 (161 %). The second price target can be predicted at 1.11658 (261.8%) and the third and final target may be expected at 1.11052 (423.6%).
If the top at 1.12637 is broken, the possible scenario is invalidated and will need to be re-evaluated.
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the EUR/USD on the H4 time-frame will remain bearish.
After the high at 1.13239, the price subsequently broke through the 15 and 34 Simple Moving Averages with the Momentum Oscillator breaking the zero baseline, both confirming a possible technical reversal in progress. This scenario was further strengthened by the crossing of the 15 and 34 Simple Moving Averages, called a Death Cross, as well as three Strong Bearish Candles.
A possible critical support level formed when a lower bottom was recorded at 1.12263 on the 18th of April. Buyers tried to push the market higher but supply overcome demand with an Evening Star Candle forming at the turning point at 1.12637 on the 22nd of April.
If the EUR/USD currency pair breaks through the critical support level at 1.12263, then three possible price targets may be projected from there. Attaching the Fibonacci tool to the lower bottom at 1.12263 and dragging it to the top of the pullback at 1.12637, the following targets may be calculated. The first target can be anticipated at 1.12032 (161 %). The second price target can be predicted at 1.11658 (261.8%) and the third and final target may be expected at 1.11052 (423.6%).
If the top at 1.12637 is broken, the possible scenario is invalidated and will need to be re-evaluated.
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the EUR/USD on the H4 time-frame will remain bearish.