EUR/USD analysis for March 30, 2021
Looking at the EUR/USD pair chart on the four-hour time frame, we see that the euro is still under great pressure, after announcing potential lockdown extensions due to the rise of newly infected with Coronavirus, while on the other hand, the dollar is getting stronger, making gains and pushing the dollar index to its highest levels this year.
The EUR/USD pair chart also shows that all moving averages are on the bearish side and that we are looking for support at the previous low at 1.16000. The last few days of economic news from the European market have been great, but they have failed to change the overall mood about the coronavirus’s effects and the slow vaccination.
On the daily time frame, we can use Fibonacci retracement levels. The first thing we see is that the EUR/USD pair made a break below the 23.6% level at 1.19500 and continued down to 38.2% level at 1.17000, where we can expect potential resistance on the chart.
We also have an upward trend line below, and as the EUR/USD pair gets closer, we can expect it to slow down and do some consolidation at that level, asking for support to start the bullish trend again. For something like that, we also need the support of at least MA20 and EMA20 moving averages, but for now, we don’t have that.
In the weekly time frame, we see that we have entered the previous major consolidation zone, after which we headed up. Here we can pay attention to the MA50 moving average, which is now testing the support at 1.17400, while the MA20 and EMA20 have taken a turn and turned down.
By setting the Fibonacci level as on the daily TF, we see that we are very close to 38.2% at 1.17000 and that the euro can find some support there. The MA200 and EMA200 are slightly above 50.0% Fibonacci levels making support at the psychological level at 1.15000.
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