Technical analysis of EUR/USD for August 23, 2016

EUR/USD remains inside the bullish short-term channel as I expected from my latest analysis targeting 1.1380 at least. Yesterday I said that the most probable outcome will be one more new high at least and this is what we are seeing now. Price is testing the previous high but bulls need to be cautious. I expect a reversal.

Blue lines -bullish channel

Being patient is part of the trading process and as I said yesterday, EURUSD bears should wait for a new high. Price is trending higher above the Kumo and inside the bullish channel. The trend is clearly bullish with no sign of reversal. Support is at 1.1270 and resistance at 1.1363. I believe this up trend will continue and we could even see above 1.14. Only a break below 1.1270 will signal a confirmed reversal.

On a daily basis price is above the Kumo and approaching the upper trading range level that we are in for the last year. 1.16 is huge resistance. Can we reach it? Yes but only if we pull back towards 1.12 and hold above the daily cloud support. So even if in the longer-term we are heading towards 1.16 we should first see a pull back. In the short-term I expect a bearish reversal and I will be looking to find reversal signal to sell this pair.The material has been provided by InstaForex Company - www.instaforex.com