EUR/USD: Do the bulls take an initiative?
Tatiana Norkina, FBS analyst
The buyers who restored currency pair to the 24th figure have performed active dids for the last two trading days on the market. Previously, we have observed the formation of a new low in 1.2250 area. This growth has led to testing of the upper border of the four-hour Ichimoku cloud but it did not force indicator to change the attitude: the cloud is still bearish and Tenkan and Kijun lines can’t cancel the effect of the dead cross.
It should also be noted that the oscillators show a rather weak upward movement.
Obviously, a break of the resistance of the cloud and fixation of prices in the positive area, above the level of 1.2420, is needed in order to inspire the bulls. If it wouldn’t happen in the nearest future, it is necessary to wait for the resumption of the downtrend.
Technical levels: support - 1.2350; resistance - 1.2420.
1. Sell - 1.2340; SL - 1.2360; TP1 - 1.2270; TP2 - 1.2200.
2. Buy - 1.2360; SL - 1.2340; TP1 - 1.2420; TP2 - 1.2470.