FX.co ★ EUR/USD

EURUSD 4-Hour Analysis: EUR/USD is now trading around 1.12399, and there is a significant divergence that will cause prices to drop short-term below the neutral bottom at 1.12099. The major buyers in this instance maintain a bullish basis and may continue to advance in order to support the mid-to-upper 100-day SMA around 1.13549. The bears may become unavailable and drive the price to around 1.14449 if the high-impact news data keeps the US index inflation rate over the 50% Fibonacci retracement mark of 104.00. Following a stop in their long-term decline at a low of 1.07099, oscillator clouds and Bollinger bands have begun heading upward. But after the rise failed to breach above 1.13599, the pair has been trading sideways for the last several days. Technically speaking, momentum indicators now point to the dominance of bullish forces. In particular, the MACD histogram is rebounding above its red trigger midline at 1.13759, while the RSI is hanging above its 50 neutral point. On the upside, bulls are expected to aim for multi-week highs of 1.16899 around 1.15659 if buyers reappear and drive prices higher, maybe meeting first resistance. While a short-term decline breaches the low-to-mid zone around 1.10969, the hazy short-term oscillators will clearly indicate a positive trend. Bearish activity may see the price test the 1.10519 support region and challenge the 38.8% Fibonacci retracement level, which is range-bound at 1.09999, during a 4-hour period. The 200-day simple moving average at 1.08999 may come into focus if that bottom fails, followed by a check of the bearish consolidation support at 1.08319. If the pair doesn't stop here, it may fall to the resistance region around 1.07639, which is now serving as support, before breaking through the weekly and daily pivot point at 1.06299. On the upside, the bears may be lengthier and open for buyers to maintain prices around the 19089 door if buyer pressure returns and more losses in the US index rate push prices over 1.14099. The attention will turn to 1.21099 above the 100-EMA as the MACD and RSI midlines react higher and swing violently inside the 1.19549 zone to attack imminent resistance.