EUR/USD H4 – Bulls might cause a stir
The EUR/USD currency pair, on the H4 time-frame, was in a downtrend until the 9th of July when a lower bottom was recorded at 1.11934. Buyers found the price attractive and demand overcame supply.
After the bottom at 1.11934 the market broke through the 15 and 34 Simple Moving Average, the Momentum Oscillator broke the zero baseline into positive territory, there was a crossing of the 15 and 34 Simple Moving Averages, called a Golden Cross and a Three Soldier Candle Pattern formed. All of these confirmed the possibility of a technical trend reversal.
A possible critical resistance level formed with a higher top was recorded on the 11th of July at 1.12870. Sellers then temporarily pushed the price lower and a higher bottom was registering on the same day at 1.12452.
If the EUR/USD breaks through the critical resistance level at 1.12870, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 1.12870 and dragging it to a possible support level at 1.12452, the following targets may be calculated. The first target can be anticipated at 1.13128 (161 %). The second price target can be predicted at 1.13546 (261.8%) and the third and final target may be expected at 1.14223 (423.6%).
If the bottom at 1.12452 is broken, the possible 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.
After the bottom at 1.11934 the market broke through the 15 and 34 Simple Moving Average, the Momentum Oscillator broke the zero baseline into positive territory, there was a crossing of the 15 and 34 Simple Moving Averages, called a Golden Cross and a Three Soldier Candle Pattern formed. All of these confirmed the possibility of a technical trend reversal.
A possible critical resistance level formed with a higher top was recorded on the 11th of July at 1.12870. Sellers then temporarily pushed the price lower and a higher bottom was registering on the same day at 1.12452.
If the EUR/USD breaks through the critical resistance level at 1.12870, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 1.12870 and dragging it to a possible support level at 1.12452, the following targets may be calculated. The first target can be anticipated at 1.13128 (161 %). The second price target can be predicted at 1.13546 (261.8%) and the third and final target may be expected at 1.14223 (423.6%).
If the bottom at 1.12452 is broken, the possible 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.
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