EUR/USD – Technical Analysis – 4h

The recent trend shows a series of bullish candlesticks, indicating a strong upward momentum. There was a bullish engulfing pattern just before the current rise, suggesting a reversal from the previous downtrend.

The trend has shifted to bullish after a period of consolidation and decline. The price has been making higher highs and higher lows since the reversal.

The price has broken above a previous resistance level around 1.1650, which may now act as support.

There is a bullish crossover where the MACD line has crossed above the Signal line. This suggests a strong upward momentum.

The MACD histogram is increasing in the positive zone, which further supports the bullish momentum and indicates strengthening momentum.

No significant divergences observed at this moment between the MACD and price action, which suggests alignment in bullish sentiment.

There appears to be a moderate increase in volume during the recent upward move, which supports the bullish price action.

Consistent volume is slightly confirming the upward price movement, indicating that the move might have backing from traders.

No unusual spikes in volume, suggesting steady buying interest rather than sudden institutional activity.

Immediate support is at the level of 1.1650, as previously mentioned.

The next key resistance is around 1.1750. A break above this level would open further upside potential.

The analysis highlights these levels as crucial for guiding trading strategies.

Consider entering a long position if the price sustains above the 1.1650 level with upward momentum continuing.

Existing long positions could be held as long as key support levels are maintained.

Look for confirmation of a sustained break above 1.1750 for additional entry points and monitor the MACD for any loss of momentum or a bearish crossover as a potential exit signal.