For Traders

Analytical Reviews

Technical analysis

13.04.202116:56 Forex Analysis & Reviews: Technical analysis on EURUSD

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

EURUSD is trading above 1.19 after making an important low at 1.17. The 1.17 level was our pull back target and important Fibonacci support. There we find the 38% Fibonacci retracement level of the entire upward move from 1.0635 to 1.2350.

Red line - resistance

Blue line- expected direction

Red rectangle- target

This current bounce we do not believe is part of the decline from 1.2350 to 1.17. This is an entire different move and we expect to see this upward bounce to continue higher towards the red rectangle target area around 1.21. EURUSD remains in an upward short-term trend as long as price is above 1.1875. Short-term indicators show a weakening upward momentum. Bulls better wait for a pull back before going long EURUSD again.

Red lines - bearish divergence

The RSI in the 4 hour chart is showing bearish divergence signs. This is not a reversal signal but only a warning that a short-term pull back could be seen over the next couple of days. Over the next couple of weeks we expect price to move towards 1.21 but in the short-term a pull back is very probable.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.