The EUR/USD currency pair, on the H4 time-frame, was in a downtrend until the 29th of November when a lower bottom was recorded at 1.09812. Buyers found the price attractive and demand overcame supply.
A closer look revealed that the Momentum Oscillator displayed positive divergence between point a and b compared to the price at 1.09924 and 1.09812. This could have alerted technical traders to a possible reversal in the making.
After the bottom at 1.09812 the market broke through the 15 and 34 Simple Moving Average, the Momentum Oscillator broke the zero baseline into positive territory and a Strong Bullish Candle formed. All of these even further confirmed the possibility of a technical trend reversal.
A possible critical resistance level formed with a higher top was recorded later on the same day near 1.10294. Sellers are currently trying to push the price lower.
If the EUR/USD breaks through the critical resistance level at 1.10294, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 1.10294 and dragging it to a possible support level near the 34 Simple Moving Average at 1.10106, the following targets may be calculated. The first target can be anticipated at 1.10411 (161 %). The second price target can be predicted at 1.10600 (261.8%) and the third and final target may be expected at 1.10906 (423.6%).
If the bottom at 1.10106 is broken, the possible scenario is overturned and will need to be re-assessed.
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.
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 1.09924 and 1.09812. This could have alerted technical traders to a possible reversal in the making.
After the bottom at 1.09812 the market broke through the 15 and 34 Simple Moving Average, the Momentum Oscillator broke the zero baseline into positive territory and a Strong Bullish Candle formed. All of these even further confirmed the possibility of a technical trend reversal.
A possible critical resistance level formed with a higher top was recorded later on the same day near 1.10294. Sellers are currently trying to push the price lower.
If the EUR/USD breaks through the critical resistance level at 1.10294, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 1.10294 and dragging it to a possible support level near the 34 Simple Moving Average at 1.10106, the following targets may be calculated. The first target can be anticipated at 1.10411 (161 %). The second price target can be predicted at 1.10600 (261.8%) and the third and final target may be expected at 1.10906 (423.6%).
If the bottom at 1.10106 is broken, the possible scenario is overturned and will need to be re-assessed.
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.
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.