EUR/USD formed a double bottom reversal patter on April 13 when it tested the support area of 1.0520 for the second time. The following move
was a sharp uptrend resulting in the breakout of the ascending channel. The
Fibonacci levels applied to the channel breakout point that was R2 (1.1321)
resistance has been broken, while neither R3 (1.1510) nor R4 (1.1820) has been
While the pair is approaching new higher highs, there are absolutely
no new lower lows and every low is higher than the previous one. This is a
pattern for an uptrend and currently the price is rejecting the 61.8% Fibs support,
which is S1 (1.1014). At the same time, the uptrend trendline has already been
rejected on June 29 with a daily close above it.
All in all, the trend is bullish and rejecting support. This
could be a great long-term buying opportunity. Consider buying EUR/USD today
while the price remains near S1 (1.1014), targeting R4 (1.1819) level 0% Fibs.
Only a daily close below S2 (1.0953), which was a low back on June 29, could change the
direction of the prevailing trend.
Support: 1.1014, 1.0953
Resistance: 1.1170, 1.1321, 1.1510, 1.1819
The material has been provided by InstaForex Company – www.instaforex.com