EURUSD Price May Pull Back to Retest $1.13 Before Bullish Trend Continues

EURUSD Price Analysis – February 07

The uptrend movement may continue provided the support level of $1.13 is defended by the bulls and this may lead to the penetration of $1.15, further increase to $1,16 and $1.17. The inability to defend the $1.13 level by the bulls may push the price down to $1.12 and $1.11 level.

EUR/USD Market

Key Levels:

Resistance levels: $1.15, $1.16, $1.17

Support levels: $1.13, $1.12, $1.11

EURUSD Long-term Trend: Bullish

On the daily chart, EURUSD is bullish. Two weeks ago, the US dollar was strong and it reflected on EURUSD by making it bearish. The price declined to the extent of locating the low of June 2020. The demand level of $1.11 was tested. A bullish reversal candle pattern formed called bullish engulfing at the support level of $1.11. The price obeyed the command of the bullish reversal candle pattern. Bullish candles emerge and the price increase to penetrate the resistance level of $1.12 and $1.13, the resistance level of $1.15 is exposed to the price.

This is an indication that the bulls are ready to take over the EURUSD market. The price is trading above the 9 periods EMA and 21 periods EMA which indicates a buy signal. The uptrend movement may continue provided the support level of $1.13 is defended by the bulls and this may lead to the penetration of $1.15, further increase to $1,16 and $1.17. The inability to defend the $1.13 level by the bulls may push the price down to $1.12 and $1.11 level.

EURUSD medium-term Trend: Bullish

EURUSD is bullish in the 4-hour chart. The price reached the support level of $1.11 on January 27. The bulls opposed the decrease in price with formation of more bullish candles. It reverses and increase towards the resistance level of $1.15. It is currently pulling back to retest the $1.13 level before bullish trend continue.

The price is trading below the 9 periods EMA and but yet to penetrate 21 periods EMA. The relative strength index period 14 is at 60 level with the signal line bending down to indicate sell signal.