At the moment, the pair is at the round level of 1.1700, near last week's high. Friday's engulfing pattern indicates that the pair is poised for growth with some correction. Oscillators on the daily chart are positive, supporting the bullish outlook. The nearest support lies at the 9-day EMA around 1.1666. A breakout below this key support zone would weaken the positive sentiment, putting pressure on the pair toward a decline, first testing 1.1650, then moving down to the 50-day SMA, followed by the round level of 1.1600, and testing the 50-day EMA at 1.1585. Further weakness would push the pair to the psychological level of 1.1500, and lower to the two-month low around 1.1391, recorded on August 1.
On the other hand, resistance for EUR/USD was met at Friday's high. A breakout above it would open the way toward 1.1770, with an interim stop near 1.1750, before reaching the round level of 1.1800 and higher, up to the July high set on July 1 around 1.1830.
