In case the support level of $110 holds and the bulls increase their momentum, EUR/USD may continue its upward movement towards the $1.20 resistance level as revealed by the technical indicator.
EUR/USD Long-term Trend: Bearish (Daily Chart)
Resistance Levels: $1.205, $1.210, $1.215
Support Levels: $1.180, $1.175, $1.170
EUR/USD is bullish on the long-term outlook as the steady increase of the currency pair has led to the formation of the bullish movement on the daily chart. However, the currency pair is seen trading above the 9-day and 21-day moving averages and at the time of writing, the currency pair is getting ready to touch the upper boundary of the channel to break out to the upward side. After touching the daily low at the $1.187 level, EUR/USD bulls gathered enough momentum and push the market price to hit the daily high at the $1.195 resistance level.
What is the Next Direction for EUR/USD?
EURUSD is currently facing a $1.200 resistance level as the currency pair remains above the moving averages focusing on the upper boundary of the channel to gain more upside as a confirmation of the bullish movement. However, as the red-line of 9-day MA is crossing above the green-line of 21-day MA, the technical indicator RSI (14) is also facing the 60-level with its signal line pointing up to indicate more buy signals.
More so, a further increase in the bullish momentum may break up the $1.200 price level to expose the currency pair to a $1.202 price level. There is a probability that EUR/USD price may reach the $1.205 level in case the bears do not oppose the current bullish movement. Once this is accomplished, the next target resistance levels could be found at $1.210 and $1.215 respectively. In other words, if the currency pair decides to slide below the moving averages, EUR/USD may likely reach the supports at $1.180, $1.175, and $1.170.
EUR/USD Medium-term Trend: Bullish (4H Chart)
EURUSD is on the bullish movement on the 4-hour chart. The bulls are seen pushing the currency pair to break up the $1.195 price level and the dynamic resistance level of 9-day and 21-day moving averages. The market price is already above the two MAs as a confirmation of the bullish trend. The trading volume is on the positive side and for the technical indicator RSI (14), the signal line points up towards the overbought region to indicate a further increase in the price of EUR/USD.
Similarly, the currency pair continues to make higher highs movement towards the resistance level of $1.195. The price is targeting a $1.198 price level. Therefore, any further bullish movement may push the price to the long-waited resistance level of $1.20 and above. On other hand, if the currency pair crosses below the moving averages, it may likely hit the supports at $1.190 and below.