EURUSD H4 – The bulls are hungry for some action

Written on 29/11/2021 by Theunis Kruger, FX Trainer at FXTM

The EURUSD market on the H4 time frame had a long-drawn-out down trend until a last lower bottom was reached on 24 November at 1.11853.

A closer look at the Momentum Oscillator reveals a positive divergence between point a and b when comparing the lower bottoms at 1.12252 and 1.11853. This could have alerted technical traders of a possible momentum reversal.

After the lower bottom, the bulls showed that they are hungry for action after the long down trend. The price broke through the 15 and 34 Simple Moving Averages with the Momentum Oscillator following suite by breaking through the baseline into bullish territory.

A possible critical resistance level formed on 26 November at 1.13282 and currently the bears are trying to bring the price down again with possible support level looming near the 1.12438 price level.

If the EURUSD manage to break through the critical resistance level at 1.13282, then three possible price targets can be considered from there. Attaching the Fibonacci tool to the top at 1.13282 and dragging it to the bottom of the possible support level at 1.12438, the following targets may be calculated. The first target can be estimated at 1.13803 (161.8%). The second price target may be at 1.14647 (261.8%) and the third and final target might be anticipated at 1.16012 (423.6%).

If the support level at 1.12438 is broken, the above scenario is annulled.

As long as the bulls continue to control the market and demand overcomes supply, the outlook for EURUSD on the Daily time frame will remain bullish.

For more information, please visit: FXTM

Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Theunis Kruger

Share

Tweet

Safest Forex Brokers 2022

	Broker	Info	Best In	Customer Satisfaction Score
#1	Your capital is at risk Founded: 2006	Globally regulated broker	BEST CUSTOMER SUPPORT Visit broker	4.9
#2	Your capital is at risk Founded: 2014	Global Forex Broker	BEST SPREADS Visit broker	4.8
#3	66% of retail CFD accounts lose money Founded: 2014	Global Forex & CFD Broker	Best Trading Conditions Visit broker	4.9
#4	67% of CFD traders lose Founded: 2007	Global CFD & FX Broker	ALL-INCLUSIVE TRADING PLATFORM Visit broker	4.9
#5	72 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008	Global CFD Broker	Best Trading App Visit broker	5

Forex Fraud Certified Brokers