EURUSD made a new higher high yesterday near 1.1284 and continues to trade in a short-term bullish trend making higher highs and higher lows. Our short-term target area has been reached but there is potential of moving towards 1.13-1.1320 area.
Green rectangle - major support area
Black line - resistance trend line (broken)
Short-term trend has reversed to bullish as we expected by the double bottom and bullish divergence signs we got last week. Breaking above the black trend line resistance confirmed this short-term trend change. Medium-term trend remains bearish as price remains inside the downward sloping red channel. Price in the short-term continues to make higher highs and higher lows and I expect to see price move closer or even above 1.13. Major resistance is found around 1.1330. Breaking above this level will open the way for a larger move higher. Support is found at 1.1240-1.1250 and bulls would not want to see this level broken.
The material has been provided by InstaForex Company - www.instaforex.com