EUR/USD could gain momentum if it clears 1.2200
|Key Highlights
- EUR/USD remained stable above 1.2050 and it recovered above 1.2120.
- It is facing a strong resistance near 1.2200 on the 4-hours chart.
Looking at the 4-hours chart, the pair cleared a major resistance near 1.2120 and a connecting bearish trend line. There was also a break above the 23.6% Fib retracement level of the downward move from the 1.2349 high to 1.2053 low.
It even climbed above 1.2150, and tested a confluence resistance near 1.2180 and the 200 simple moving average (green, 4-hours). There is also a major resistance forming near 1.2200 and the 100 simple moving average (red, 4-hours).
The 50% Fib retracement level of the downward move from the 1.2349 high to 1.2053 low is also at 1.2201. Therefore, a clear break and close above 1.2200 could open the doors for a steady increase towards 1.2250 or 1.2300.
Conversely, EUR/USD could fail to clear the 1.2200 resistance and started another decline. On the downside, the 1.2120 is a decent support. If there are more downsides, the pair could revisit the 1.2050 support zone.
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