The EUR/USD pair has managed to hold above the 1.1350 support once again and bulls are now trying to break above the important medium-term resistance levels. EUR/USD is once again above 1.14-1.1430 and this time, an upward breakout rather than another rejection is more likely.
Yellow rectangles - trading range
Green line - RSI support trend line
Red line -major trend line resistance
EUR/USD is trying to break above the upper boundary of the trading range for the fourth time, while at the same time, it touches the red downward sloping trend line resistance for the fifth time. As we noted in the previous posts, the Daily bullish divergence signs by the RSI increase the chance of an upward breakout. Our first target is the 38% Fibonacci retracement level of the entire decline. Key support at 1.1350 has been held, so there are more signs of strength than that of weakness.
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