Home EUR/USD Price Analysis: Trapped in a 40-pip range
FXStreet News

EUR/USD Price Analysis: Trapped in a 40-pip range

EUR/USD is being squeeze in a narrow range since Wednesday’s early European trading hours. 

While the upside has been capped around 1.2150, the bears have failed to push the pair below 1.2110. A breakout/breakdown from the newfound range would open the doors for at least a 40-pip bullish/bearish move. 

A range breakout looks likely as the MACD histogram has turned bullish for first since December. Further, the 40-pip looks like a bullish continuation pattern when viewed against the backdrop of Tuesday’s upward break of the descending trendline connecting Jan. 6 and Jan. 29 highs. 

A move above 1.2150 would expose resistance at (Jan. 22 high). On the flip side, a break below 1.2110 would shift risk in favor of a drop toward 1.2050.

Hourly chart

Trend: Bullish

Technical levels

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.