Euro to dollar forecast is stable with supports on the downside at 1.2200 and 1.2180. EUR/USD just turned bullish and it could accelerate higher towards the 1.2400 and 1.2500 levels.
The recent decline in the Euro to dollar exchange rate found support near 1.2200. The price formed a bottom, started an upside move and broke a bearish trend line at 1.2280 on the 4-hour chart.
Euro to Dollar Forecast Positive
There was a major downside move in the EUR this past week as it fell below the 1.2400 support against the USD. However, the downside move was protected by a major support near 1.2200.
The stated 1.2200 level acted as a support on many occasions, and this time it was tested two times. Sellers failed to gain momentum below 1.2200 and the price started an upside move.
EUR/USD moved higher and traded above the 23.6 percent Fib retracement level of the last drop from the 1.2525 high to 1.2209 low. In addition, the pair broke the 1.2260 resistance and settled above the 150 simple moving average (orange, 4-hour).
More importantly, there was a break above a bearish trend line at 1.2280 on the 4-hour chart. The recent 1.2300 break has opened the doors for more gains and the pair could move further higher.
On the upside, the next major resistance is near 1.2360 and the 50 percent Fib retracement level of the last drop from the 1.2525 high to 1.2209 low. Furthermore, the 100 simple moving average (green, 4-hour) is at 1.2362 to act as a resistance.
Therefore, the Euro has to move above the 1.2360 resistance to gain further upside momentum. Above 1.2360, the pair could accelerate toward the 1.2400 level. Further above 1.2400, the final target for buyers could be 1.2500.
EUR/USD Support and Resistance Levels (Technical Analysis)
Important resistance levels are 1.2360, 1.2400 and 1.2500. Supports on the downside are 1.2280 and 1.2200.
The overall trend is positive as long as the shared currency stays above 1.2280 and the 150 SMA. Below 1.2280, it could retest the 1.2200 support.
Trade safe and wisely traders.