Will EUR/USD go for a higher high?

EUR/USD traded higher on Tuesday after it hit support at 1.2122. Overall, the pair continues to trade above the upside support line drawn from the low of March 31^st, and thus, we would consider the near-term outlook to be positive for now.

If the bulls are willing to stay in the driver’s seat, we could see them overcoming the 1.2177 hurdles soon, which is marked as resistance by yesterday’s high. This will confirm a forthcoming higher high on both the 4-hour and daily charts and may see scope for advances towards the 1.2243 area, marked by the high of February 25^th. If they are not willing to stop there, the next barrier to consider as a resistance may be at 1.2285, marked by the high of January 8^th.

Taking a look at our short-term oscillators, we see that the RSI turned up again and is back close to its 70 line, while the MACD is positive, and although below its trigger line, shows signs of turning up as well. Both indicators suggest that the upside momentum may have started strengthening again, which supports the notion for further advances.

In order to abandon the bullish case and start examining a short-term bearish reversal, we would like to see a dip below 1.1985. The rate would already be below the aforementioned upside line, while the drop below 1.1985 would confirm a forthcoming lower low on the daily chart. The bears may then dive towards the 1.1942 level, marked by the low of April 19^th, the break of which could carry extensions towards the 1.1877 area, defined by the low of April 13^th.

JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services

Share: Analysis feed

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.

72,99% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure: https://www.jfdbank.com/en/legal/risk-disclosure