EUR/USD made a big move higher yesterday after the Fed Chairman press conference yesterday. The speech weakened USD substantially. EUR/USD has now broken above 1.14 and this is a major bullish sign for EUR.
Red line - major resistance trend line (broken)
Green line - support
Blue line - RSI divergence (broken)
EUR/USD has broken above 1.14 and the red trend line resistance is making a higher high than the one made on February 28th. The RSI also canceled the bearish divergence by providing a higher high. This could be the start of a bigger upward move at its early stages. A pullback as a back test could be expected, but bulls now need to see a higher low being formed and then a higher high. On the other hand bears need to see this trend reverse soon and stay below 1.14. The medium-term outlook is now being challenged to change to bullish as price is breaking above 1.14.
The material has been provided by InstaForex Company - www.instaforex.com