Yesterday, we mentioned that support at 1.1520 is crucial. Price tested the 1.1520-1.15 area but did not break down. This was expected as the RSI has been giving bullish divergence signals. On the contrary, price broke above the wedge pattern and is progressing higher according to our analysis.
Blue upward sloping line - bullish divergence
The EUR/USD pair has broken above the 1.1570-1.1580 resistance and is heading towards 1.1650-1.17 which is our first target area. Resistance is strong between 1.1660-1.17 and a break above it will open the way for a move towards 1.18-1.19. Support is at 1.1560-1.1570. A break below this area will open the way for 1.1450.
