Overview:
The EUR/USD pair set above strong support at the level of 1.1120, which coincides with the 50% Fibonacci retracement level.
This support has been rejected for four times confirming uptrend veracity. Hence, major support is seen at the level of 1.1120 because the trend is still showing strength above it.
Accordingly, the pair is still in the uptrend from the area of 1.1120 and 1.1200.
This is confirmed by the RSI indicator signaling that we are still in the bullish trending market.
The EUR/USD pair is trading in a bullish trend from the last support line of 1.1120 towards the first resistance level at 1.1200 in order to test the double top on the H1 chart.
Now, the pair is likely to begin an ascending movement to the point of 1.1200 and further to the level of 1.1242.
The level of 1.1242 will act as second resistance and the double top is already set at the point of 1.1200.
However, if a breakout happens at the support levels of 1.1120 and 1.1078, then this scenario may be invalidated. But in overall, we still prefer the bullish scenario.
