EUR/USD continues to hold above the 1.13 support area and slowly but steadily has reached our next bounce target area of 1.1350-1.1380. The bearish divergence signs in the 4 hour chart remain and so our bearish medium-term view as long as we trade below 1.14.
Red rectangle - bounce target and resistance
Red line - major resistance trend line
Green line- support
Orange rectangle - short-term support
EUR/USD is trading above 1.1330 and continues to make higher highs and higher lows. Support remains important at 1.13 and crucial for the short-term trend. As we noted in our past analysis, short-term trend will change to bearish on a break below 1.13. Medium-term trend remains bearish as long as we trade below 1.14 and below the red trend line resistance. The higher highs are not followed by confirmed new highs in the RSI. This implies that at least a pullback will be seen soon and most probably will bring price below 1.13.
The material has been provided by InstaForex Company - www.instaforex.com
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