Technical analysis of EUR/USD for February 17, 2021

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Overview :

The EUR/USD pair continues to move downwards from the level of c. Yesterday, the pair dropped from the level of 1.2169 (this level of 1.2169 coincides with the double top) to the bottom around 1.2076.

Today, the first resistance level is seen at 1.2122 followed by 1.2169, while daily support 1 is found at 1.2062 (the daily pivot point).

Therefore, strong support will be found at the level of 1.2062 providing a clear signal to buy with a target seen at 1.2122.

On the H1 chart. the level of 1.2062 coincides with 50% of Fibonacci, which is expected to act as minor support today. Since the trend is above the 50% Fibonacci level, the market is still in an uptrend.

But, major support is seen at the level of 1.2062.

If the trend breaks the minor resistance at 1.2122, the pair will move upwards continuing the bullish trend development to the level 1.2169 in order to test the daily resistance 1.

The EUR/USD pair is showing signs of strength following a breakout of the highest level of 1.2169.

The EUR/USD pair set above strong support at the level of 1.2062, which coincides with the 50% Fibonacci retracement level. This support has been rejected for four times confirming uptrend veracity.

Thus, the market is indicating a bullish opportunity above the above-mentioned support levels, for that the bullish outlook remains the same as long as the 100 EMA is headed to the upside. Furthermore, the trend is still showing strength above the moving average (100).

It should be noted that volatility is very high for that the EUR/USD pair is still moving between 1.2062 and 1.2217 in coming hours.

The EUR/USD pair is continuing to trade in a bullish trend from the new support level of 1.2062; to form a bullish channel. we expect the EUR/USD pair to continue moving in the bullish trend from the support level of 1.2062 towards the target level of 1.2122.

If the pair succeeds in passing through the level of 1.2122, the market will indicate the bullish opportunity above the level of 1.2122 in order to reach the second target at 1.2169. However, if a breakout happens at the support level of 1.2005, then this scenario may be invalidated.

The material has been provided by InstaForex Company - www.instaforex.com

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