Overview:
- The EUR/USD pair broke resistance which turned into strong support at the level of 1.2204 last week. Moreover, it should be noted that the weekly support is seen at 1.2058. The level of 1.2058 coincides with a golden ratio (61.8% of Fibonacci), which is expected to act as major support today. The Relative Strength Index (RSI) is considered overbought because it is above 70. The RSI is still signaling that the trend is upward as it is strong above the moving average (100). This suggests the pair will probably go up in coming hours. Accordingly, the market is likely to show signs of a bullish trend. Therefore, buy orders are recommended above 1.2250 with the first target at the level of 1.2340. From this point, the pair is likely to begin an ascending movement to the point of 1.2340 and further to the level of 1.2400 in coming days. The level of 1.2400 will act as strong resistance. On the other hand, if a breakout happens at the support level of 1.2058, then this scenario may become invalidated.
