EUR/USD is about to make a significant breakout towards the North on the daily chart. Today’s intraday price action has been bullish, and a level of resistance which has been held for a long time has been breached on the minor time frames. If the price continues to be bullish and makes a breakout on the H4 chart as well, then the pair may remain bullish on the daily chart for a few days.
Let us have a look at the EUR/USD daily chart.
Chart 1 EUR/USD Daily Chart
The price kept heading towards the South after making pullbacks. The level of 1.0900 has come out as a level of support from where the price has started heading towards North. Traders may think it is a pullback as well, so the price may get bearish on a daily reversal candle. It remains a possibility. However, the price after having consolidation and producing a bullish engulfing daily candle at the level of 1.0950, it has made a breakout at the level of 1.1000 on minor intraday charts. An H4 breakout at this level may attract more buyers to go long on the pair.
Here is another equation that may make the buyers more interested in buying the pair.
Chart 2 EUR/USD Daily Chart
The price was down-trending by obeying a trendline. The chart above shows that the price had several rejections, and it is now right at the resistance of the trendline. The way it has been going, today’s daily candle may end up breaching the trendline’s resistance. Horizontal resistance and trendline resistance breakout at one go shall make the pair very bullish on the daily chart.
Let us observe the H4 EUR/USD chart
If we flip over from the daily chart to the H4 chart, both the support and resistance levels are to be adjusted a little. The H4 chart shows that the price has produced a Double Bottom at the level of 1.0945 and breached the neckline as well. It is not an H4 breakout yet, though. However, the price keeps pushing towards the North, which may end up making an H4 breakout. As mentioned earlier, an H4 breakout at the neckline of a Double Bottom shall add more fuel with its bullish move.
The H4 chart looks very good for the buyers, and the daily chart suggests that the traders should wait for the price to make a daily breakout at the horizontal as well as the trendline resistance breakout to go long on EURUSD.
Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.