The EUR/USD pair broke resistance which turned to strong support at the level of 1.1245 yesterday. The level of 1.1245 coincides with a golden ratio (78% of Fibonacci), which is expected to act as major support today.
The Relative Strength Index (RSI) is considered overbought because it is around 70. The RSI is still signaling that the trend is upward as it is still strong above the moving average (100).
This suggests the pair will probably go up in coming hours. Accordingly, the market is likely to show signs of a bullish trend.
In other words, buy orders are recommended above 1.1245 with the first target at the level of 1.1349.
From this point, the pair is likely to begin an ascending movement to the point of 1.1349 and further to the level of 1.1425.
The level of 1.1425 will act as strong resistance and the double top is already set at the point of 1.1349.
On the other hand, if a breakout happens at the support level of 1.1166, then this scenario may become invalidated.
The material has been provided by InstaForex Company – www.instaforex.com