EUR/USD nears a turning point after prolonged consolidation

Aayush Jindal TitanFX

Key highlights

EUR/USD started a consolidation phase above the 1.1120 support.
A possible bullish flag is forming with resistance at 1.1240 on the 4-hour chart.

EUR/USD technical analysis

Looking at the 4-hour chart, the pair even cleared 1.1220 and tested 1.1270 before the bears appeared. There was a minor pullback below 1.1250, and the pair started trading in a range. It tested the 50% Fib retracement level of the recovery wave from the 1.1113 swing low to the 1.1269 high.

The pair is now trading near the 100 simple moving average (red, 4-hour) and is below the 200 simple moving average (green, 4-hour). If there is another increase, the pair could face resistance near 1.1240. There is also a possible bullish flag forming with resistance at 1.1240.

The first major resistance might be near 1.1270. A close above 1.1270 could start a steady increase. In the stated case, the pair might even surpass 1.1320. The main hurdle could be near the 200 simple moving average (green, 4-hour) at 1.1350.

Conversely, the pair could see another decline. Immediate support could be 1.1190. The first major support might be 1.1150. A close below 1.1150 might accelerate the decline. In the stated case, the pair might drop to 1.1100. The main support might be close to 1.1050.

Author

Aayush Jindal

TitanFX

I have spent over six years as a financial markets contributor and observer, and possess strong technical analytical skills. I am a software engineer by profession, loves blogging and observing financial markets.

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