This morning the price of the EUR/USD pair has been plummeting with strong bullish momentum, resulting in a break below the 50-day and 100-day moving averages lines on the daily timeframe, indicating that the bulls are presently in control of the market.
The US Dollar pair started a major rise after it failed to clear 1.0363 against the Euro. The EUR/USD pair traded above the 1.0363 support to enter a bullish zone.
If the price breaks above the stated resistance level, the most probable scenario is a climb towards the 1.0518 critical bid zone. Also, must note that the daily pivot has already set at the price of 1.0518 (major resistance).
Today, the EUR/USD pair has broken resistance at the level of 1.0548 which acts as support now. Thus, the pair has already formed minor support at 1.0548.
The strong support is seen at the level of 1.0548 because it represents the weekly support 1. Equally important, the RSI and the moving average (100) are still calling for an uptrend. Therefore, the market indicates a bullish opportunity at the level of 1.0548 in the H1 chart.
Also, if the trend is buoyant, then the currency pair strength will be defined as following: EUR is in an uptrend and USD is in a downtrend.
Buy above the minor support of 1.0548 with the first target at 1.0548 (this price is coinciding with the ratio of 23.6% Fibonacci), and continue towards 1.0518 (the weekly resistance 1).
From this point, the pair is likely to begin an ascending movement to the point of 1.0518 and further to the level of 1.0567. The level of 1.0567 will act as strong resistance and the double top is already set at the point of 1.0616.
However, the recent price action suggests that the negative momentum had weakened. The price experienced a short-term bullish leg towards 1.0518, which got rejected. But this can be considered as a pullback to the 1.0458 support level.
