Overview:
The EUR/USD pair broke resistance which turned to strong support at the level of 1.1089 yesterday.
The level of 1.1089 coincides with 50% of Fibonacci, which is expected to act as major support today.
Since the trend is above the 50% Fibonacci level, the market is still in an uptrend.
Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. Consequently, the first support is set at the level of 1.1089 (horizontal green line).
This would suggest a bearish market because the moving average (100) is still in a positive area and does not show any trend-reversal signs at the moment.
So, the market is likely to show signs of a bullish trend around the spot of 1.1089.
In other words, buy orders are recommended above the spot of 1.1089 with the first target at the level of 1.1180; and continue towards 1.1218 (the weekly resistance 2).
Bearish outlook
On the other hand, if the EUR/USD pair fails to break through the resistance level of 1..1180, the market will decline further to 1.1089. The pair is expected to drop lower towards at least 1.1032 with a view to test the weekly support 2.
The material has been provided by InstaForex Company – www.instaforex.com
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