EUR/USD has been testing the 3-day resistance at the price of 1.1340 but there are still no larger buyers.
According to the daily time-frame, we found bullish divergence active on the stochastic oscillator, which is a sign that the dominant cycle is for the upside. Today, price went higher and it failed to sustain a move above the 3-day high 1.1340, which caused the downward correction. The trend is still bullish and there are not signs of any reversal yet. Key short-term resistance is set at 1.1345 and key support at 1.1277.
Trading recommendation: We plan to buy EUR on the potential break of 1.1340 with a target at 1.1400 and protective stop at 1.1277.
The material has been provided by InstaForex Company - www.instaforex.com