As we saw yesterday, there is a strong support at 1.17100. This level has been tested several times but could not be broken. This level is the 76.40% and acts as a strong support.
Price is inside the cloud. Tenkansen Conversion Line and MA50 are at the same level of 1.18450 as a strong resistance.
So we can see that there is a zone between 1.18450 and 1.17000 which we can call indecisive zone.
is in oversold area, this may indicate that the price can move towards 1.18450.
EURUSD H4 Chart
Price is below the cloud and we can see the pressure here. The border of the cloud, 76.40% of H4 chart and MA50 sets a resistance in 1.18000- 1.18200 zones.
As a summary:
We can not talk about the continuation of upwards price movement as long as the price holds below 1.18500.
We can not talk about the continuation of downward price movement till the price makes H4 closings below 1.17000.
We will use upwards price movements towards 1.18000- 1.18200 as a sell opportunity with SL 1.18550
We will use downwards price movements towards 1.17300 – 1.17100 as a buying opportunity with stop loss at 1.16850