EUR/USD has been trading sideways at the price of 1.1100 in past 20 hours. Anyway, in my opinion there is potential for upside movement in the future. I found that there is potential completion of the ABC downward correction and on the hourly we got higher highs and higher lows, which is indication of the upward trend.
Technical picture:
On the daily time-frame I found that USD/JPY did test and reject of the key support at 1.1083, which is for me sign that selling at this stage looks extremely risky. Additionally, I found that there is potential for more upside movement due to completion of the abc downward correction and short-term upward trend. Important upward levels are set at 1.1135 and 1.1150. Key support is seen at the price of 1.1070.
Important resistance levels:
Yellow rectangle – 1.1135
Yellow rectangle – 1.1150
Important support levels:
Orange horizontal line – 1.1083
Orange horizontal line – 1.1070
Watch for buying opportunities with the targets at 1.1135 and 1.1150.
