FX.co ★ Technical analysis of EUR/USD for February 19, 2021

EUR/USD :

Price is testing major resistance at 1.2151 (50% Fibonacci retracement, bullish bar harmonic formation) and we expect to see a strong reaction off this level to push price up towards 1.2197 before 1.2262 resistance (Fibonacci retracement, horizontal swing high resistance).

On the four-hour chart, the EUR/USD pair continues moving in a bullish trend from the support levels of 1.2044 and 1.2104. Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market.

As the price is still above the moving average (100), immediate support is seen at 1.2104, which coincides with a golden ratio (38.2% of Fibonacci).

Consequently, the first support is set at the level of 1.2104. So, the market is likely to show signs of a bullish trend around the spot of 1.2104/1.2044.

Buy orders are recommended above the golden ratio (1.2104) with the first target at the level of 1.2197.

Furthermore, if the trend is able to breakout through the first resistance level of 1.2197. We should see the pair climbing towards the double top (1.2349) to test it.

Uptrend scenario :

An uptrend will start as soon, as the market rises above support level 1.2104, which will be followed by moving up to resistance levels of 1.2197, a1.2266 nd 1.2349.

On the other hand , the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 1.1951.

A daily closure above 1.2349 allows the pair to make a quick bullish movement towards the next resistance level around 1.2500 next week.

However, traders should watch for any signs of bearish rejection that occur around 1.1951.