EURUSD: Euro Bulls Shooting For 1.2270

On the hourly TF, the EURGBP cross bounced off U3 and is now correcting lower after yesterday's rally. If the trend picks up momentum, the price could resume its ascent from 0.9040 and in a sawtooth pattern to 0.9120. Euro cross buying can be seen, except for the EURCHF and EURGBP pairs. For this reason, the euro bulls will have to try harder if the 1.2150 level is to be tested.

Support currently stands at 1.2095 (the trendline from 1.1923). Below is the 45-degree line (1.2070). From the technical standpoint, the pair looks ripe for a correction, but right now the market is being driven predominantly by geopolitical factors. The crowd will apparently buy/sell into whichever headlines are fed into FX newsreels. And while players would be better off entering the market on the basis of technical analysis, there is no guarantee that a signal will turn into profit given the likelihood of unexpected news.

Parenthetically, we also note that on the daily and weekly timeframes, buyers have set their sights on the 1.2270 target level. On the three-month chart, the target is 1.28. If the current upward trend has legs, the price could hit this mark by mid-June 2021.

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Disclaimer: Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial ...

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