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  • EUR/USD trades over half a percent higher on Monday.
  • The price has bounced off an important resistance but will 1.13 hold. 

EUR/USD 4-hour chart

EUR/USD has been trading higher on the Monday as risk sentiment in macro markets improved. The EUR is one of the best-performing currencies rising against all of the majors. 

Analysing the 4-hour chart below the key feature is the resistance level. It has been tested for the fourth time on Monday. Only once did the price manage to break through but the move did not last long. The last 4-hour candle is a shooting star candle which is traditionally bearish. A confirmation signal for the bearish break would be if the price falls below 1.2397, the previous green candle opening price. 

The MACD is still positive, the histogram is still in the green and the signal lines are above the zero point adding to the bullish bias. The Relative Strength Index is also still positive. The signal line nearly hit the overbought zone but pulled back slightly in this latest retracement, there is now still some space to move higher.

EUR/USD technical analysis

Additional levels