An overview of important support and resistance levels of the four major currency pairs of the ongoing week.
• First key support level of EUR/USD: 1.10727
• Second Key support level of EUR/USD: 1.10332
• Third Key support level of EUR/USD: 1.09492
• First key resistance level of EUR/USD: 1.11419
• Second Key resistance level of EUR/USD: 1.122
• Third Key resistance level of EUR/USD: 1.12789
• First key support level of USD/CHF: 0.85591
• Second Key support level of USD/CHF: 0.84310
• Third Key support level of USD/CHF: 0.83300
• First key resistance level of USD/CHF: 0.86163
• Second Key resistance level of USD/CHF: 0.86610
• Third Key resistance level of USD/CHF: 0.87485
• First key support level of GBP/USD: 1.29396
• Second Key support level of GBP/USD: 1.28957
• Third Key support level of GBP/USD: 1.28600
• First key resistance level of GBP/USD: 1.30073
• Second Key resistance level of GBP/USD: 1.30422
• Third Key resistance level of GBP/USD: 1.31424
• First key support level of USD/JPY: 145.407
• Second Key support level of USD/JPY: 141.800
• Third Key support level of USD/JPY: 138.000
• First key resistance level of USD/JPY: 147.572
• Second Key resistance level of USD/JPY: 149.417
• Third Key resistance level of USD/JPY: 151.678
Review of the EUR/USD Status as of 20/08/2024
As mentioned in the previous EUR/USD analysis dated 13/08/2024, the price had the potential for an upward movement, which eventually materialised as buyers succeeded in initiating a strong upward cycle, overcoming significant resistance levels.
There is no apparent reason for a downward trend in the current scenario, considering the long-term movements, such as monthly and weekly intervals. As previously noted, due to the maintenance of the critical support level at 1.05000 and the relatively oversold price condition, there remains potential for an upward movement in this currency pair.
In shorter-term intervals, such as daily and 4-hour charts, the predominant trend is also bullish, with buyers aiming to reach the resistance levels of 1.10900 and, subsequently, 1.11300. However, there might be a minor correction or decline in the price along the way.
Due to the price approaching the resistance level of 1.10900 and being overbought, there are emerging weak signs of buyers exiting their positions. The formation of a non-ideal spinning top candlestick pattern on the 4-hour chart is the first indication of this potential exit.
Considering the price movements observed in this popular currency pair, from the low of 1.06000 to the current upward movement, a harmonic pattern of the AB=CD type, with non-ideal Fibonacci ratios of 61.8 and 127.2, is forming. If point D (formation of acceptable factors for a price peak) is completed, it will attract the attention of technical traders.
The CloseOption Team
www.closeoption.com
