EUR/USD: technical analysis 08.02.2019
On 4-hour chart, EUR/USD price is correcting up after the fall to the level of 1.1322. The instrument is now testing a strong resistance level of 1.1352.(Murray [4/8]. Breakout of the 1.1352 level will let the price to grow to the area of 1.1383, which coincided with the middle line of Bollinger Bands.
If EUR/USD cannot consolidate above the level of 1.1352, the downward trend restoration and retest of the level 1.1322 (Murray [3/8]), 1.1291 (Murray [0/8]) are possible.
Technical indicators mostly keep a sell signal, but the upward correction is possible in the short term. Bollinger Bands are leaned downwards, reflecting the moderate developing of the downward trend. MACD histogram is in the negative zone. Stochastic has left the oversold zone and is pointed upwards, reflecting the high possibility of the upward movement formation.
Support and resistance
Support levels: 1.1322, 1.1291, 1.1261, 1.1230.
Resistance levels: 1.1352, 1.1383, 1.1413, 1.1441.
Short positions can be opened below the level of 1.1322 with the target at around 1.1291-1.1261 and stop-loss 1.1342.
Long positions can be opened above the level of 1.1352 with the target at around 1.1383-1.1413 and stop-loss 1.1330.