EUR/USD Price Analysis – May 4
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: Ranging (Daily Chart)
Resistance Levels: $1.220, $1.225, $1.230
Support Levels: $1.190, $1.185, $1.180
According to the daily chart, EUR/USD is seen sliding below 9-day MA towards the 21-day moving average, and a further decrease in price is highly envisaged provided the bears increase their momentum and this may push the price to the support level of $1.195. In case the mentioned level does not hold, a $1.21 price level could be the next target. On the daily chart, a daily bearish candle is forming below the just mentioned level which indicates that the bears are dominating the EUR/USD market.
What to Expect from EUR/USD
EUR/USD price is making an attempt to penetrate the two moving averages downside and it is trading within the 9-day and 21-day MAs which connotes an increase in the bearish momentum. Meanwhile, the technical indicator RSI (14) is moving below the 55-level with the signal line pointing down to indicates a sell signal. In case the daily bearish candle closes below the support level of $1.195, then the bearish momentum may continue towards the critical support levels at $1.190, $1.85, and $1.80.
However, should the support level of $1.20 holds, the price may bounce and move back towards the north side. More so, a further increase may break above the moving averages to expose the currency pair to the next resistance level of $1.210. Meanwhile, there is a higher probability that the market price may cross above the upper boundary of the channel and once this is done, the currency pair may locate the potential resistance levels at $1.220, $1.225, and $1.230.
EUR/USD Medium-term Trend: Ranging (4H Chart)
EUR/USD is ranging on the medium-term outlook. The currency pair is on the bearish movement on the 4-hour chart as the price remains below the 9-day and 1-day moving averages. Meanwhile, the former support level of $1.199 is already broken upside by the bulls, and the price exposed to the resistance level of $1.201. Any further bullish movement could locate the resistance level of $1.206 and above.
Nevertheless, the price is currently moving in sideways below the moving averages in which the red-line of 9-day MA stays below the green-line of 21-day MA to indicate bearish movement. If the currency pair crosses below the lower boundary of the channel, it may likely reach the support at $1.196 and below. More so, the technical indicator RSI (14) is moving below 40-level with the signal line pointing down to indicate a sell signal.