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 1.0596 and 1.0687.
Resistance and support are seen at the levels of 1.0687 (also, the double top is already set at the point of 1.0687) and 1.0596 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 1.0687 which represents a key level today.
The level of 1.0596 will act as the daily pivot point on the hourly chart. The EUR/USD pair broke resistance at 1.0687 which turned into strong support yesterday.
The level of 1.0596 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 (1.0596) 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 (1.0596) in the coming hours.
The EUR/USD pair will demonstrate strength following a breakout of the high at 1.0687.
Consequently, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 1.0687 with the first target at 1.0737.
Then, the pair is likely to begin an ascending movement to 1.0737 mark and further to 1.0800 levels.
The level of 1.0800 will act as strong resistance, and the double top is already set at 1.0737.
On the other hand, the daily strong support is seen at 1.0593. If the EUR/USD pair is able to break out the level of 1.0593, the market will decline further to 1.0563 (daily support 2).
