EUR/USD Forex Signal – September 16: Bulls Challenge Chart Resistance
Original Author: Adam Lemon
Source: MENAFN (https://www.menafn.com/1110070205/EURUSD-Forex-Signal-Today-1609-Bulls-Threaten-Chart)
Overview
The EUR/USD pair showed increased bullish momentum as the European trading session progressed on September 16, with a recent market bounce pushing the currency pair closer to critical resistance levels. The upward pressure reflects an increasingly favorable technical chart pattern, indicating that buyers are regaining control across timeframes.
The euro had been consolidating against the US dollar over the last few sessions, trading within a relatively tight range. However, recent developments suggest that this consolidation may be ending, with bulls mounting a serious challenge to key resistance areas which could determine the next directional move. Traders are closely analyzing support and resistance zones, aligning technical patterns with macroeconomic indicators to guide short-term trading decisions.
Key Technical Data
– Pair: EUR/USD
– Resistance levels: 1.1890, 1.1915, 1.1950
– Support levels: 1.1845, 1.1800, 1.1750
– Current trend: Bullish breakout attempts
– Indicative trading direction: Buy (subject to confirmation at breakout)
Price Action Analysis
Over the past week, the EUR/USD currency pair has managed to hold ground firmly above the 1.1800 level. Bulls have succeeded in defending this psychological support more than once, which adds validity to the potential buildup of a bullish breakout structure.
– The pair has formed a rising trendline, aligning with prior swing lows, which further confirms that buyers are stepping in at higher levels.
– A relatively tight consolidation pattern near resistance suggests an impending breakout. If the pair breaks cleanly above the 1.1890 level, it could trigger additional upward movement toward 1.1950 or beyond.
– On the daily chart, the 50-day moving average remains below the current price, supporting the bullish trend since late July.
– RSI (Relative Strength Index) on the four-hour and daily charts remains comfortably above 50, with a gentle upward slope indicating additional potential buying pressure.
Support and Resistance Levels
Identifying key support and resistance levels can significantly influence trading decisions. Below are the levels most relevant to the EUR/USD positioning as of September 16.
Support Levels:
– 1.1845: A minor but crucial level where multiple intraday rebounds occurred; more perceptible on the 1-hour chart.
– 1.1800: A significant round figure and psychological support point; well-respected during the last two retracements.
– 1.1750: Considered firm support from the August low; losing this level could invalidate the current bullish bias.
Resistance Levels:
– 1.1890: Immediate resistance and price cap during recent rallies. A confirmed break above this level could signal an acceleration in momentum.
– 1.1915: Historical resistance encountered in early September. A revisit to this level would be the second test, with a stronger chance of penetration.
– 1.1950: Long-term resistance aligned with the yearly high; acts as the ultimate bullish target in the current breakout scenario.
Technical Indicators
A comprehensive analysis of available indicators sustains the current bullish lean:
– Moving Averages:
– 20-SMA: Trending upwards, recently crossed over the 50-SMA, signaling bullish continuation.
– 50-SMA: Maintaining a steady uptrend since August, supportive of medium-term buying.
– 100-SMA: Still below the price and adds depth to the support level at 1.1750.
– RSI:
– Four-hour RSI hovers around 60, with upward bias indicating moderate strength.
– Daily RSI remains steady at approximately 56–58 range, consistent with a bullish outlook.
– MACD:
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