Trend in the EUR/USD pair was argumentative as it was trading in a narrow sideways channel, the market showed signs of instability. Amid the previous events, the price is still moving between the levels of 0.9973 and 1.0089. Resistance and support are seen at the levels of 1.0089 (also, the double top is already set at the point of 1.0089) and 0.9973 respectively.
Therefore, it is recommended to be cautious while placing orders in this area. So, we need to wait until the sideways channel has completed. The current price is seen at 1 USD which represents a key level today. The level of 1.2301 will act as the daily pivot point on the hourly chart.
The EUR/USD pair broke resistance at 0.9973 which turned into strong support yesterday. This level coincides with 38.2% of Fibonacci retracement which is expected to act as major support today.
Equally important, the RSI is still signaling that the trend is upward, while the moving average (100) is headed to the upside.
Accordingly, the bullish outlook remains the same as long as the EMA 100 is pointing to the uptrend. This suggests that the pair will probably go above the daily pivot point (0.9973) in the coming hours. The EUR/USD pair will demonstrate strength following a breakout of the high at 0.9973.
This suggests that the pair will probably go above the daily pivot point (0.9973) in the coming hours. The EUR/USD pair will demonstrate strength following a breakout of the high at 0.9973.
Consequently, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 0.9973 with the first target at 1.0048.
Then, the pair is likely to begin an ascending movement to 1.0089 mark and further to 1.0133 levels. The level of 1.0133 will act as strong resistance, and the double top is already set at 1.0133.
On the other hand, the daily strong support is seen at 0.9933. If the EUR/USD pair is able to break out the level of 0.9933, the market will decline further to 0.9901 (daily support 2).
Uptrend scenario :
An uptrend will start as soon, as the market rises above resistance level 0.9933, which will be followed by moving up to resistance level 1.0048. Further close above the high end may cause a rally towards 1.0089 and 1.0133. Nonetheless, the weekly resistance level and zone should be considered.
Alternative scenario :
The breakdown of 0.9933 will allow the pair to go further down to the prices of 0.9945 and 0.9901.
