EURUSD has been consolidating between levels 1.1175 and 1.0985 for nearly 2 months. Last Friday, on 29.11, the daily candle covered the previous three levels creating a bullish engulfing formation. This candle formation is quite important as it was formed on the support of a growth channel.

EURUSD Daily – bullish engulfing

When we look at the four-hour chart (below), we can identify two scenarios, of which a bullish seems more likely, but in order to be realized it is necessary to effectively overcome the range of bullish engulfing. In this case, buyers can aim for the nearest supply zone at 1,1070. It is worth observing the MACD oscillator at D1 if it sets a minimum and starts to rise, the upward scenario will be even more likely. However, if the market decides to go south, the target will be demand zone 1.0960

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