EUR/USD: New Breakout Attempt

EUR/USD stands higher at 1.1773 level and it could challenge the immediate resistance of 1.18 soon. The pair is trapped between 1.17 and 1.18 psychological levels, a breakout from this range should bring a fresh trading opportunity, signal.

Unfortunately, the FOMC Meeting Minutes failed to bring a clear direction. Today, the German Trade Balance dropped from 18.0B to 15.7B, much below the 17.1B estimate. The US Unemployment Claims are expected around 820K in the former week, a deeper drop could boost the dollar.

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The pair continues to stay near the R1 (1.1785) and the second warning line (wl2) of the descending pitchfork. A valid breakout above these obstacles followed by a bullish closure above 1.18 should confirm a further growth towards 1.2 psychological level.

Anything could happen as long as EUR/USD is located under the near-term resistance levels. A false breakout, bearish engulfing, or a failure to reach the immediate obstacles should send the price down.

  • EUR/USD Trading Tips

Buy EUR/USD if the price closes above 1.1807 former high. The 1.2 psychological level could be taken as a target.

Sell a bearish closure below 1.17 - 1.1694 area. The next major downside target stands at the 1.1495 level.

The material has been provided by InstaForex Company - www.instaforex.com