Overview:
- The EUR/USD pair continues moving in a bullish trend from the support levels of 1.1168 and 1.1107. 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 1.1168, which coincides with the ratio of 50% of Fibonacci. Consequently, the first support is set at the level of 1.1168. So, the market is likely to show signs of a bullish trend around the spot of 1.1168. In other words, buy orders are recommended above 1.1168 with the first target at the level of 1.1229 in order to form the double top. However, the price spot of 1.1229 remains a significant resistance zone. Thus, the trend will probably be rebounded again from the double top as long as the level of 1.1229 is not breached. Hence, the daily resistance will be sen at the price of 1.1229 in the H4 time frame. Furthermore, if the trend is not able to breakout through the first resistance level of 1.1229. We should see the pair dropping towards the support level of 1.1107 to test it. If the pair succeeds to pass through the level of 1.1107, the market will probably continue towards the next objective at 1.1032. At the same time, the market will decline further to 1.1032 - 1.1000 so as to call for a bearish market this week. It would also be wise to consider where to place a stop loss; this should be set above the major resistance of 1.1229.
