A general review :
The EUR/USD pair built in a rising wedge towards the end of last week (around the spot of 1.2054), which will often be approached with the aim of calling for a strong bullish market.
And there remains some potential there as prices have been heading higher so far as long as the trend is stil set above the level of 1.2054.
That support (1.2054) began to give way earlier today, but buyers quickly jumped in to pull prices back-above.
Between the levels of 1.2054 and 1.2190 the EUR/USD pair reached 1.2170, which was the highest price for the pair on record since last week.
The EUR/USD pair has climbed along a steep, upward-sloping support channel (1.2054 - 1.2138), the pair rose at an even more ambitious incline.
We expect to see a strong reaction off this level to push price up towards 1.2190 before 1.2138 support (61.8% of Fibonacci retracement, horizontal swing low support, daily classical pivot points).
The EUR/USD pair has broken resistance at the level of 1.2138 which acts as support now. Thus, the pair has already formed minor support at 1.2138.
The strong support is seen at the level of 1.2054 because it represents the weekly support 1.
Equally important, the RSI and the moving average (100) are still calling for an uptrend. RIS (14) is seeing major support above 50% where we expect further upside movement from.
Therefore, the market indicates a bullish opportunity at the level of 1.2138 in the H1 chart.
Buy above the minor support of 1.2138 with the first target at 1.2232 , and continue towards 1.2274 (this price is coinciding with the ratio of 161.8% Fibonacci).
On the other hand, if the price closes below the minor support, the best location for the stop loss order is seen below 1.2138; hence, the price will fall into the bearish market in order to go further towards the strong support at 1.2054 to test it again. Furthermore, the level of 1.2054 will form a double bottom.
In larger time frames the trend is still bullish as long as the level of 1.2054 is not breached.
Intraday technical levels :
- Strong Resistance (Sell Limit) : 1.2350
- Projected High : 1.2274
- Breakout (Buy Stop) : 1.2190
- Current Pivot: 1.2138
- Strong Support (Buy Limit) : 1.2106
- Breakout (Sell Stop) : 1.2054
- Projected Low : 1.1965
