Last week I mentioned that it was important for bulls to see a weekly close above 1.1350. The weekly close was even better. Price closed above 1.14 and a bullish reversal candlestick pattern was created. A bullish hammer pattern was made and this gave bulls hopes for this week.
Green rectangles - bullish hammer patterns
Red lines - bullish divergence
Bulls saw EUR/USD close above 1.14 last week but need a follow through this week. Resistance is found at 1.1490 and a weekly close above it would be great news for bulls. On the other hand bulls do not want to see price reverse and close below 1.1350. That would be a bearish sign. EUR/USD has the potential to move higher as long as 1.1350-1.13 area holds.
The material has been provided by InstaForex Company - www.instaforex.com