The EUR/USD pair climbed from 1.1807 to 1.1881 and closed at the price of 1.1884. Today we note that the market is still trading below the level of 1.1881.
Please, note that the resistance stands at the levels of 1.1881 and 1.1925 in the daily time frame. In the longer term, the strong resistance at 1.1996, continues to represent a major hurdle.
Therefore, right now the first ascending impulse is forming the first one; the market is being corrected from the area of 1.1807.
Hence, the EUR/USD pair faced resistance at the level of 1.1925, while minor resistance is seen at 1.1881. Support is found at the levels of 1.1807 and 1.1784.
Pivot point has already set at the level of 1.1807. Equally important, the EUR/USD pair is still moving around the key level at 1.1807, which represents a daily pivot in the H1 time frame at the moment.
Yesterday, the EUR/USD pair continued to move upwards from the level of 1.1807. The pair will rise to the top around 1.1881 from the level of 1.1807 (coincides with the ratio of 61.8% Fibonacci retracement).
In consequence, the EUR/USD pair broke resistance, which turned into strong support at the level of 1.1807. The level of 1.1807 is expected to act as the major support today.
We expect the EUR/USD pair to keep to trade in the bullish trend towards the target levels of 1.1925 and 1.1966.
On the downtrend :
On the other hand, if a breakout happens at the support level of 1.1807 , then this scenario may be invalidated.
If the pair fails to pass through the level of 1.1807, the market will indicate a bearish opportunity below the level of 1.1807. So, the market will decline further to 1.1784 and 1.1762 to return to the daily support.
Moreover, a breakout of that target will move the pair further downwards to 1.1688 in order to form the double bottom.
Conclusion
The depicted resistance level of 1.1807 acted as an important key level offering a valid buy entry. So, buy above the 1.1807 level with the targets of 1.1881, 1.1925, and 1.1966 today. Conversely, stop loss should be placed below the high reached near the first support (1.1762).
