The EUR/USD pair continues to move upwards from the level of 1.1290. Yesterday, the pair rose from the level of 1.1290 to a top around 1.1361 (the level of 1.1361 coincides with a ratio of 38.2% Fibonacci retracement).
Today, the first support level is seen at 1.1290 followed by 1.1252, while daily resistance 1 is seen at 1.1384.
According to the previous events, the EUR/USD pair is still moving between the levels of 1.3232 and 1.1432; for that we expect a range of 100 pips (1.1432 – 1.3232).
On the one-hour chart, immediate resistance is seen at 1.1407, which coincides with a ratio of 61.8% Fibonacci retracement -last bullish wave, top.
Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. The price is still above the moving average (100) and (50).
Therefore, if the trend is able to break out through the first resistance level of 1.1361, we should see the pair climbing towards the daily resistance at c to test it.
The EUR/USD pair will demonstrate strength following a breakout of the high at 1.1407. Consequently, the market is likely to show signs of a bullish trend.
In other words, buy orders are recommended above 1.1361 with the first target at 1.1407. Then, the pair is likely to begin an ascending movement to 1.1407 mark and further to 1.1483 levels. The level of 1.1483 will act as strong resistance.
It would also be wise to consider where to place stop loss; this should be set below the second support of 1.1285.
The material has been provided by InstaForex Company – www.instaforex.com