Hello, dear traders!
The movement of the main currency pair in the forex market has recently been chaotic.
Daily chart
After plunging to 1.2100, EUR/USD has found support near this level and is already recovering. At the moment of writing, the pair was trading near 1.2180. Over the past three days, EUR/USD has been trading near the red Tenkan-Sen line of the Ichimoku indicator, and has closed either above or below it. Despite yesterday's strong GDP report in the eurozone, the euro slightly declined against the greenback on June 8th. Any important macroeconomic reports are not expected to come out today in the United States and the eurozone. US wholesale inventories that are due today are unlikely to somehow affect the pair. Today, the price is assumed to be driven by market sentiment that has recently been changing rapidly. According to the daily chart, if EUR/USD closes above the red Tenkan-Sen line and consolidates, the price may test resistance in the 1.2244-1.2266 range. But prior to that, the quote should break and consolidate above a strong level of 1.2200.
In case bears break the support level of 1.2100, the targets will be seen at 1.2075, 1.2065, and 1.2050.
H4 chart
Based on the H4 chart, the price has encountered support in the 1.2100 region. In particular, it is indicated by a large white candlestick as of June 4th. The bullish run stopped after the price reached 1.2200. Thus, the pair is currently trading in the 1.2100-1.2200 range. If the quote leaves this relatively narrow corridor, the price direction may reverse. In case of a breakout at 1.2200 and 1.2100, the targets have already been disclosed.
If EUR/USD stays in the corridor for a while, it is worth tracking candlestick signals. In case of a bearish candlestick signal in the 1.2180-1.2200 range on this or other time frame, short positions can be considered with targets at 1.2130-1.2100. Long positions may be opened from the 1.2130-1.2100 range with a Take Profit at 1.2180 and 1.2200 if Japanese canglestisks give bullis signals. These are relatively strong levels to trigger a rebound at least. At the same time, it is safer to wait for a true breakout of 1.2100 or 1.2200. Then, after the price bounces to a true breakout level, positions can be opened in the direction of a breakout.
Have a nice trading day!
