EURUSD Forecast 20th Feb,2023Today we may see a small correction and then again a rally into a Bull Section. Please pay attention to the mentioned levels for any trade set up.
18th Feb
DH - 1.06986
DL - 1.06126
20TH FEB,2023
R1- 1.0724, S1- 1.0638
R2- 1.0754
R3- 1.0840, S3 - 1.0583
The EUR/USD needs to avoid a fall through the $1.0668 pivot to target the First Major Resistance Level (R1) at $1.0724. A return to $1.07 would signal a bullish session. However, the EUR/USD would need ECB member chatter and today’s stats to support a breakout session.
In the case of an extended rally, the bulls will likely test the Second Major Resistance Level (R2) at $1.0754. The Third Major Resistance Level (R3) sits at $1.0840.
A fall through the pivot would bring the First Major Support Level (S1) at $1.0638 into play. However, barring a data-fueled sell-off, the EUR/USD pair should avoid sub-$1.06 and the third Major Support Level (S3) at $1.0583.
Looking at the EMAs and the 4-hourly chart, the EMAs send a bearish signal. The EUR/USD sits below the 50-day EMA ($1.07131). Following the bearish cross on Wednesday, the 50-day EMA pulled further back from the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bearish signals.
A move through the 50-day EMA ($1.07131) and R1 ($1.0724) would give the bulls a run at the 200-day ($1.07328) and the 100-day ($1.07456) EMAs. A move through the 50-day EMA would send a bullish signal. However, failure to move through the 50-day EMA ($1.07159) would leave the Major Support Levels in play
