Forex Analysis:::2021-06-16T08:26:30
Technical Analysis of EUR/USD for June 16, 2021
Overview :
- After breaking the support at 1.2204. The EUR/USD pair has set strong resistances at the levels of 1.2204 because the support has become a resistance on the 15th of June 2021.
- So, the price has already formed the strong resistance at the level of 1.2204 and the pair probably will try to approach from it in order to test it again.
- However, if the pair fails to pass through the level of 1.2204, the market will indicate a bearish opportunity below the new strong resistance level of 1.2204 (the level of 1.2204 coincides with the ratio of 78% Fibonacci).
- Moreover, the RSI is becoming to signal a downward trend, as the trend is still showing strong above the moving average (100) and (50). Thus, the market is indicating a bearish opportunity below the 1.0075 level so it will be a good sign to sell at 1.2204 with the first target of 1.2090.
- It will also call for a downtrend in order to continue towards 1.2052. The daily strong support is seen at 1.1986.
- However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the price of 1.2266.
- On the other hand, it is also worth noting that the price at 0.8521 will possibly form a strong support.
- Accordingly, saturation around 1.1986 to rebound the pair is likely to occur. Furthermore, it is possible that the market is going to start showing the signs of bullish market.
- Hence, it will be a good sign to buy above 1.1986 with the first target of 1.2090 and continue towards 1.2204 and 1.2266 in order to form a double top.
Mourad El Keddani
Analyst InstaForex
