Forex Analysis:::2021-04-22T11:17:16
Technical Analysis of EUR/USD for April 22, 2021
Overview :
- The EUR/USD pair continues to move upwards from the level of 1.2000. Yesterday, the pair rose from the level of 1.2000 (the level of 1.2000 coincides with a ratio of 61.8% Fibonacci retracement) to a top around 1.2053.
- Today, the first support level is seen at 0.9866 followed by 0.9789, while daily resistance 1 is seen at 0.9990. According to the previous events, the USD/CHF pair is still moving between the levels of 0.9866 and 0.9990; for that we expect a range of 124 pips (0.9990 - 0.9866).
- On the one-hour chart, immediate resistance is seen at 1.2080, which coincides with a ratio of 100% Fibonacci retracement -last bullish wave, top.
- Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. The price is still above the moving average (100) and (50).
- Therefore, if the trend is able to break out through the first resistance level of 1.2080, we should see the pair climbing towards the daily resistance at 1.2127 to test it.
- The EUR/USD pair will demonstrate strength following a breakout of the high at 1.2000. Consequently, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 1.2080 with the first target at 1.2127.
- Then, the pair is likely to begin an ascending movement to 1.2127 mark and further to 1.2148 levels. The level of 1.2148 will act as strong resistance.
- It would also be wise to consider where to place stop loss; this should be set below the second support of 1.1975.
Mourad El Keddani
Analyst InstaForex
