EURUSD traded higher as we expected yesterday. The price tested the level of 1.1239. The bearish divergence on the oscillator is building but the price is still trading in the well-defined upward channel.
Orange rectangle – 20EMA acting like support
Green lines – Upward channel
Purple rectangle – Strong resistance based on price action
EURUSD is trading near the lower upward diagonal and at the previous day high at 1.1223, which act like support. Technically, there is no serious signs of potential trend reverse and only potential downside limited correction is possible. The EUR is making higher highs and higher lows, which is clear sign of well-defined trend. Resistance levels are seen at the price of 1.1260 and 1.1280. Support levels are seen at the price of 1.1223 and 1.1195. Watch for buying opportunities and the break of the 1.1240 would confirm potential test of 1.1260-1.1280.
