The EUR/USD needs to move through the $1.0565 pivot to target the First Major Resistance Level (R1) at $1.0594 and the Friday high of $1.06143. A return to $1.06 would signal a bullish session. However, the EUR/USD would need the stats and the ECB chatter to support a breakout session.
In the case of an extended rally, the bulls will likely test the Second Major Resistance Level (R2) at $1.0643. The Third Major Resistance Level (R3) sits at $1.0722.
Failure to move through the pivot would leave the First Major Support Level (S1) at $1.0516 in play. However, barring a data-fueled sell-off, the EUR/USD pair should avoid sub-$1.0450. The Second Major Support Level (S2) at $1.0487 should limit the downside. The Third Major Support Level (S3) sits at $1.0409.
Looking at the EMAs and the 4-hourly chart, the EMAs send a bearish signal. The EUR/USD sits below the 50-day EMA ($1.06397). The 50-day EMA slid back from the 200-day EMA, with the 100-day EMA pulling back from the 200-day EMA, delivering bearish signals.
A move through R1 ($1.0594) would give the bulls a run at the 50-day EMA ($1.06397) and R2 ($1.0643). A move through the 50-day EMA would send a bullish signal. However, failure to move through the 50-day EMA ($1.06397) would leave the Major Support Levels in play.
In the case of an extended rally, the bulls will likely test the Second Major Resistance Level (R2) at $1.0643. The Third Major Resistance Level (R3) sits at $1.0722.
Failure to move through the pivot would leave the First Major Support Level (S1) at $1.0516 in play. However, barring a data-fueled sell-off, the EUR/USD pair should avoid sub-$1.0450. The Second Major Support Level (S2) at $1.0487 should limit the downside. The Third Major Support Level (S3) sits at $1.0409.
Looking at the EMAs and the 4-hourly chart, the EMAs send a bearish signal. The EUR/USD sits below the 50-day EMA ($1.06397). The 50-day EMA slid back from the 200-day EMA, with the 100-day EMA pulling back from the 200-day EMA, delivering bearish signals.
A move through R1 ($1.0594) would give the bulls a run at the 50-day EMA ($1.06397) and R2 ($1.0643). A move through the 50-day EMA would send a bullish signal. However, failure to move through the 50-day EMA ($1.06397) would leave the Major Support Levels in play.