The resistance of EUR/USD pair has broken; it turned to support around the price of 1.0452 this week. Thereby, the trend is forming a strong support at 1.0452 . The level of 1.0452 coincides with the golden ratio (23.6% of Fibonacci retracement) which is acting as major support today.
Another thought; the Relative Strength Index (RSI) is considered overbought because it is above 50. At the same time, the RSI is still signaling an upward trend, as the trend is still showing strong above the moving average (50 - blue trend), this suggests the pair will probably go up in coming hours.
Accordingly, the market will probably show the signs of a bullish trend. In other words, buy orders are recommended above 1.0516 level with their first target at the level of 1.0568.
From this point, the pair is likely to begin an ascending movement to the point of 1.0568 and further to the level of 1.0620.
The price of 1.0620 will act as a strong resistance and the double top has already set at the point of 1.0691.
If the trend breaks the resistance level of 1.0691, the pair is likely to move upwards continuing the development of a bullish trend to the level 1.0787i n order to test the monthly top (horizontal red line) - last bullish wave.
On the other hand, stop loss should always be taken into account, accordingly, it will be of beneficial to set the stop loss below the last bearish wave at the level of 1.0348.
