The EUR/USD currency pair, on the H4 time-frame, was in a downward move from the 27th of May until the 30th of May when a lower bottom was registered at 1.11160. Buyers found the price attractive and demand overcome supply with five bullish candles pushing the price through the 15 and 34 Simple Moving Average and the Momentum Oscillator breaking the zero baseline into positive territory. Both providing clues that a likely technical reversal might be in progress.
A possible critical resistance level formed when a higher top was recorded at 1.11905 on the 3th of June. Sellers are currently trying to drive prices lower.
If the EUR/USD breaks through the critical resistance level at 1.11905, then three possible price targets may be projected from there. Attaching the Fibonacci tool to 1.11905 and dragging it a possible support level near the 34 Simple Moving Average at 1.11369, the following targets may be calculated. The first target can be anticipated at 1.12237 (161 %). The second price target can be predicted at 1.12773 (261.8%) and the third and final target may be expected at 1.13642 (423.6%).
If the possible support level at 1.11369 is broken, the discussed scenario is invalidated and will need 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.
A possible critical resistance level formed when a higher top was recorded at 1.11905 on the 3th of June. Sellers are currently trying to drive prices lower.
If the EUR/USD breaks through the critical resistance level at 1.11905, then three possible price targets may be projected from there. Attaching the Fibonacci tool to 1.11905 and dragging it a possible support level near the 34 Simple Moving Average at 1.11369, the following targets may be calculated. The first target can be anticipated at 1.12237 (161 %). The second price target can be predicted at 1.12773 (261.8%) and the third and final target may be expected at 1.13642 (423.6%).
If the possible support level at 1.11369 is broken, the discussed scenario is invalidated and will need 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.
Comment:
In the scenario above, the first and second targets were reached with the second wave of the new uptrend. The market is currently in a pullback but as long as demand overcomes supply, the possibility of the price reaching the third target is good.