EUR/USD is trading inside a short-term bullish channel. Price is trading between the 38% and 50% Fibonacci retracement levels and could provide a higher high towards the 61.8% level early next week.
Green line - support trend line
Black line - RSI support trend line
Blue rectangle - support/resistance area
EUR/USD has started making higher highs and higher lows as expected from 1.1270 after touching the green trend line. The bullish RSI divergence has been confirmed with price bouncing towards 1.1370. As long as the RSI is trading above the black trend line support, we could expect a move closer to the red downward sloping trend line. Our most probable target remains at 1.14 area. However, I continue to consider this bounce as a selling opportunity as long as we trade below 1.15.
