Support levels: 1.1700, 1.1850, 1.2000
Resistance levels: 1.2350, 1.2250, 1.2150
EURUSD halted on its bullish run at the beginning of the year. On the 6th of January 2021, price peaked at 1.2350 after which it dropped through the year. Subsequent lower highs were formed on the daily chart. On the 25th of February, a lower high was formed with a rejection seen with a long wick. The third lower high was formed on the 29th of April on the descending trend line.
Price has shown its willingness to remain bullish as it used the support at 1.20000 after the rejection on the bearish trend line. It bounced on the support and energetically pushed through the old lower high breaking the resistance level above at 1.21500.
The Average Directional Index (ADX) on the daily chart reads 28.93 as at the time of writing. The ADX notifies that the strength of the trend is still very low. This is because the recent bullishness on EURUSD seen on the daily chart still lies within the range of the bearish trend that started on the 6th of January.
Price Anticipation of EURUSD
Price has broken through the resistance zone at 1.2350 and would likely seek support to continue pushing higher. Price might also retest the resistance zone or the bearish trend line to push higher. Retracement is expected on EURUSD. A retest on the bearish trend line or the resistance zone at 1.21500 would likely propel price to a 1.22500 resistance level.
The 9 Moving Average acts as a support for price as it rallies higher as it switches position to rest below the previous day’s candle.
The Average Directional Index (ADX) on the 1-hour time frame is at 59.58 at the time of writing showing the bullish strength in the last 48 hours.
On the 1-hour, chart price is seen to have properly rested at 1.2000 before taking off. Price might likely retrace to seek support before it continues to rally.
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