EUR/USD downside seems over

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EUR/USD is located at 1.1746 level above the downtrend line. A jump above the downtrend line signaled that the downside movement could be complete. The pair has decreased a little in the short term but it has failed to retest the broken downtrend line.

The former low at 1.1762 was seen as a downside obstacle, as a support level, as long as EUR/USD was traded above it. Now, this level turned into resistance, an upside obstacle. Another jump above it will signal that EUR/USD is likely to indicate a potential upside reversal.

Trading conclusion

The EUR/USD pair could continue to increase if it jumps and stabilizes above 1.1762. It could raise as long as it stays above the downtrend line and above 1.1667 lower low. The level of 1.1908 is seen as a potential upside target if the price continues to increase.

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

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