EURUSD – failed to break out from consolidation

EURUSD Daily chart
EURUSD Daily – failed to break out from a flag pattern

EURUSD has been moving since mid-November in a broad consolidation between 1.1220 and 1.1570. Last week’s ECB meeting and Draghi’s conference added some vigour to this pair, after quite abrupt falls on Thursday and overcoming the lower limit of this consolidation, Friday turned out to be bullish and the price was again in its range.

EURUSD H4 chart, divergence
EURUSD H4 – a bullish divergence on MACD

On Chart H4 (above) we see that the demand response at 1.13 was strong and the price beat the previous maximum without problems. Additionally, bullish divergence supports growth.

EURUSD H1 – the average EMA144 was a dynamic resistance and after broken, it becomes a support

In order to find a good place to join the growth, it is worth looking at the H1 chart, where the average EMA144, which has recently acted as strong dynamic resistance, can determine our entry level, becoming a support for the returning price.

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