EUR/USD is below very important long-term resistance. If EUR/USD manages to break and hold above 1.17-1.1730 area, we should expect a big upward move to unfold over the coming weeks towards 1.19-1.21. A rejection however and a break below 1.1620 will be a very bearish sign.
Red line - long-term resistance
Blue line - long-term support
Green line - short-term support
EUR/USD has managed to reach the red trend line resistance more than once but each time prices got rejected. This is a bearish sign. However all pull backs have managed to stay above the short-term support green trend line at 1.1660. A break below this level will most probably open the way for a move towards the blue trend line support at 1.1520. If that level is lost as well we should expect EUR/USD to move towards 1.13-1.14. On the other hand, if the price breaks and stays above the red trend line, I expect a move towards at least 1.19.
The material has been provided by InstaForex Company -
www.instaforex.com