The EUR/USD currency pair, on the H4 time-frame, was in a downward move until the 14th of November when a lower bottom was recorded at 1.09890. Bulls then started to find the price attractive.
A closer look revealed that the Momentum Oscillator displayed positive divergence between point a and b compared to the price at 1.10166 and 1.09890. This could have alerted technical traders to a possible technical reversal.
After the lower bottom at 1.09890 the price broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator broke through the zero baseline into positive territory. This confirmed a possible price reversal or initial stages of a new trend.
A likely critical resistance level formed when a higher top was recorded on the 15th of November at 1.10299. Sellers then tried to pull the market lower.
Later on the same day the EUR/USD broke through the critical resistance level at 1.10299 and a long position was triggered. Three possible price targets were projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 1.10299 and dragging it to a possible support level near the 34 Simple Moving Average at 1.10103, the following targets was calculated. The first target was anticipated at 1.10420 (161 %) and reached with partial profit taken and mental pressure lessened. The second price target can be predicted at 1.10616 (261.8%) and the third and final target may be expected at 1.10933 (423.6%).
If the support level at 1.10103 is broken, the long position must be liquidated to protect trading capital and new scenarios must be re-evaluated.
As long as buyers keep a positive attitude and demand overcomes supply, the outlook for the EUR/USD currency pair on the H4 time-frame will remain bullish.
Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.
A closer look revealed that the Momentum Oscillator displayed positive divergence between point a and b compared to the price at 1.10166 and 1.09890. This could have alerted technical traders to a possible technical reversal.
After the lower bottom at 1.09890 the price broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator broke through the zero baseline into positive territory. This confirmed a possible price reversal or initial stages of a new trend.
A likely critical resistance level formed when a higher top was recorded on the 15th of November at 1.10299. Sellers then tried to pull the market lower.
Later on the same day the EUR/USD broke through the critical resistance level at 1.10299 and a long position was triggered. Three possible price targets were projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 1.10299 and dragging it to a possible support level near the 34 Simple Moving Average at 1.10103, the following targets was calculated. The first target was anticipated at 1.10420 (161 %) and reached with partial profit taken and mental pressure lessened. The second price target can be predicted at 1.10616 (261.8%) and the third and final target may be expected at 1.10933 (423.6%).
If the support level at 1.10103 is broken, the long position must be liquidated to protect trading capital and new scenarios must be re-evaluated.
As long as buyers keep a positive attitude and demand overcomes supply, the outlook for the EUR/USD currency pair on the H4 time-frame will remain bullish.
Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.