EURUSD Price Increase Is Possible as Double Bottom Chart Pattern Emerges

Updated:

EURUSD Price Analysis – June 20

In case the bears break down the support level of $1.04, the price may reach support levels of $1.02 and $1.01. Should the buyers defend the support level of $1.04, the price may increase above the resistance level of $1.06, then, price may increase to test the resistance level of $1.07, which may extend to $1.09 level.

EUR/USD Market

Key Levels:

Resistance levels: $1.06, $1.07, $1.09

Support levels: $1.04, $1.02, $1.01

EURUSD Long-term Trend: Bearish

EURUSD is bearish on the long term outlook. The price action formed a bullish reversal chart pattern called double bottom. The first touch was on May 12, the price bounced up to test the resistance level of $1.07. The price reverse at the just mentioned level and turned to south. Last week, the previous low of $1.02 was tested last week. There is tendency for the price to commence a bullish trend.

EURUSD continues trading below the 9 periods EMA and the 21 periods EMA at close contact. In case the bears break down the support level of $1.04, the price may reach support levels of $1.02 and $1.01. Should the buyers defend the support level of $1.04, the price may increase above the resistance level of $1.06, then, price may increase to test the resistance level of $1.07, which may extend to $1.09 level. The Relative Strength Index period 14 is found at 44 levels with the signal line pointing up to indicate a buy signal.

EURUSD medium-term Trend: Bullish

EURUSD is bullish in the medium-term outlook. The currency pair has formed a bullish reversal pattern called triple bottom on 4-hour chart. The bulls are gaining strength gradually to dominate the market. Retracement was carried out last week to the support level of $1.04. At the moment, it is increasing targeting resistance level of $1.06.

The price is trading above the 9 periods EMA and 21 periods EMA, the two EMAs are separated from each other as a sign of high momentum in the market. Relative Strength Index period 14 is pointing up at 55 levels which indicate a buy signal.

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.