Technical analysis of EUR/USD for August 28, 2017

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Overview:

  • On the one-hour chart, the EUR/USD pair bullish trend from the support levels of 1.1846 and 1.1895. Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), immediate support is seen at 1.1895, which coincides with a golden ratio (78.6% of Fibonacci). Consequently, the first support is set at the level of 1.1895. So, the market is likely to show signs of a bullish trend around the spot of 1.1895/1.1846. In other words, buy orders are recommended above the golden ratio (1.1846) with the first target at the level of 1.1959 (the double top).We should see the pair climbing towards the double top (1.1959) to test it. Furthermore, if the trend is able to break out through the first resistance level of 1.1959, then the trend will continue towards the next targets of 1.1988 and 1.2031. It would also be wise to consider where to place a stop loss; this should be set below the second support of 1.0123.
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