EURUSD trading in the consolidated region, cautious investors waits
In the last trading week, the EURUSD pair sharply dropped in the global market after hitting the critical resistance level at 1.24440.Most of the aggressive price action traders have already shorted this pair after the bearish Doji formation in the daily chart. Due to the uncertainty of the forex market, the expert traders have moved their stop loss to the breakeven point. Prior to the closing of the last trading week, the pair found some decent support at 1.22704.A daily closing of the price below that level will ultimately lead this pair towards the next critical support level at 1.21523.On the contrary, a break above the critical resistance level at 1.24440 will eventually lead this pair towards the high of 19th February 2017.
EURUSD daily chart analysis
Figure: EURUSD heading towards major support level
In the above figure, you can clearly see that we have bearish morning start pattern formed right at the critical resistance level. The bears are trying to take control of this market from this level. However, we have plenty of support below the current price level. The first major support for the EURUSD pair is the medium term bullish trend line support at 1.21205.The expert traders will be looking for bullish price action confirmation signal to execute fresh long orders at that level. However, a clear break of the trend line support will change the overall bias of this pair in to bearish. A daily closing of the price below the critical support level at 1.21205 will ultimately lead this pair towards the next support level at 1.20772.
EURUSD weekly chart analysis
Figure: Price consolidated near at a critical zone
In the weekly chart, we have a different scenario. From the above figure you can clearly see that price has consolidated near at a critical level and without having a clear break it’s extremely risky to trade this pair. If the pair manages to break below the triangle support level at 1.22618, the bears will lead this pair towards the weekly support level at 1.20917.From that level, we might see some decent bullish bounce. However, a clear break of the support level at 1.20817 will result in sharp fall. The next bearish stop for this pair would be the major resistance level at 1.15371.
On the upside, we need to break above the triangle support level at 1.24230 to establish fresh bullish momentum in this pair. A clear break of the triangle resistance level ill will lead this pair towards the major resistance level at 1.25470.This level is very crucial for the long-term investors and the sellers will try their best to cap the recent bullish rally. A weekly closing of the price above that level will confirm the establishment of a medium-term bullish trend in this pair. Considering the daily and weekly technical parameters it’s better to stay on the sideline until the pair breaks out of this consolidated region.