Technical analysis of EUR/USD for December 04, 2017

EURUSDH4.png

Overview:

  • Last week, the EUR/USD pair broke resistance which turned to strong support at the level of 1.1908. However, the major support is seen at the price of 1.1870.
  • The level of 1.1870 coincides with the ratio of 78.6% of Fibonacci, which is expected to act as major support today.
  • The Relative Strength Index (RSI) is considered overbought because it is above 70. The RSI is still signaling that the trend is upward as it is still strong above the moving average (100).
  • This suggests the pair will probably go up in coming hours. Accordingly, the market is likely to show signs of a bullish trend.
  • In other words, buy orders are recommended above 1.1908 with the first target at the level of 1.1953. From this point, the pair is likely to begin an ascending movement to the point of 1.2014 and further to the level of 1.2053. The level of 1.2053 will act as strong resistance.
  • On the other hand, if a breakout happens at the support level of 1.1873, then this scenario may become invalidated.
The material has been provided by InstaForex Company - www.instaforex.com