Technical analysis of EUR/USD for August 22, 2016

As long as EUR/USD is trading above 1.1220-1.12 there are more chances of another new higher high near 1.1380-1.14. Long-term trend remains clearly neutral as price is inside the one-year trading range of 1.06-1.17.

Black lines - trading range boundaries

Price is approaching the upper boundary of the trading range and bulls should be very cautious in case we have another rejection and another run towards the lower end of the range.

Blue lines - bullish channel

Red lines - price projection

Price is inside a short-term bullish channel and above the 4 hour Kumo. Price is expect to move towards the lower channel boundary and bounce for a new high near 1.1380. Cloud support is at 1.12. There are some divergence signs that should be worrying for bulls.

A break out of the bullish channel and below the cloud at 1,1175 will open the way for a deeper correction towards 1.09-1.10. 1.14 Is very important resistance that rejected price last week. We could see a bigger reversal from the 1.13-1.14 area.The material has been provided by InstaForex Company - www.instaforex.com