Technical Analysis of EUR/USD for April 16, 2021


Overview :
  • The EUR/USD pair broke resistance which turned to strong support at the level of 1.1937 yesterday.
  • The level of 1.1937 coincides with 78% of Fibonacci, which is expected to act as major support today. Since the trend is above the 78% Fibonacci level, it means the market is still in a uptrend.
  • From this point, the EUR/USD pair is continuing in a bullish trend from the new support of 1.1937.
  • This is shown to us as the current price is in a bullish channel. According to the previous events, we expect that the EUR/USD pair will move between 1.1937 and 1.2059.
  • On the H1 chart, resistances are seen at the levels of 1.2059 and 1.2109. Also, it should ne noticed that, the level of 1.1937 is representing the daily pivot point.
  • Therefore, strong support will be formed at the level of 1.1937 providing a clear signal for buy deals with the targets seen at 1.1993.
  • If the trend breaks the resistance at 1.1993 (first resistance). Thereupon, it is possible that the pair will move upwards continuing the development of the bullish trend to the level 1.2059 in order to test the daily resistance 2 - next target 1.2109.
  • However, stop-loss is to be placed below the price of 1.1865.
The material has been provided by InstaForex Company -