EURUSD broke a resistance level at 1.3691 on Friday to reach 1.3712, opening the path for a move higher towards the next resistance level (R1) at 1.3738 (January 24 high). Failure to breach this level would reinstate the downside bias the pair has in the long term.
In the past 3 weeks, the pair has been trading in a range between 1.34-1.38 and has recently retraced more than 78.6% of the move down from the January 24 high (1.3738) to the February 3 low (1.3476). Prices are currently in the upper half of the Bollinger bands and approaching the upper band which will act as a resistance level since it coincides with R1.
If prices bounce off the upper Bollinger band and fall back down, immediate support is at 1.3640, which is the 61.8% Fibonacci level. If this does not hold, the next target is in the area of 1.3557 (this week’s low) and 1.3575 (38.2% Fibonacci and lower Bollinger band).
Technical indicators are mixed, so a clearer signal needs to be given in order for the EURUSD pair to proceed in a more convincing direction.
EURUSD broke a resistance level at 1.3691 on Friday to reach 1.3712, opening the path for a move higher towards the next resistance level (R1) at 1.3738 (January 24 high). Failure to breach this level would reinstate the downside bias the pair has in the long term.
In the past 3 weeks, the pair has been trading in a range between 1.34-1.38 and has recently retraced more than 78.6% of the move down from the January 24 high (1.3738) to the February 3 low (1.3476). Prices are currently in the upper half of the Bollinger bands and approaching the upper band which will act as a resistance level since it coincides with R1.
If prices bounce off the upper Bollinger band and fall back down, immediate support is at 1.3640, which is the 61.8% Fibonacci level. If this does not hold, the next target is in the area of 1.3557 (this week’s low) and 1.3575 (38.2% Fibonacci and lower Bollinger band).
Technical indicators are mixed, so a clearer signal needs to be given in order for the EURUSD pair to proceed in a more convincing direction.
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