EUR/USD got rejected yesterday at the upper trading range boundary and pushed towards our second support level of 1.1340 after breaking below 1.14. The inability to break above 1.15 combined with the break below 1.14 is a sign of weakness. Although support at 1.13-1.1340 has held, trend remains neutral trapped inside the trading range.
Yellow rectangles - trading range
Red line - major trend line resistance
Green line - RSI major support trend line
Gold line - RSI short-term trend line support
EUR/USD got rejected at the major trend line resistance. The RSI has reached the short-term support trend line and stopped the decline. If the gold trend line RSI support fails to hold, we should expect EUR/USD to move lower or even provide a new low below 1.12 with the RSI challenging the green trend line support. If price manages to recapture 1.14-1.1430 we could see prices move towards 1.15 and higher. I prefer to be bullish at current levels with stops at 1.1260.
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