Overview :

The EUR/USD pair continues to move upwards from the level of 1.0908. Yesterday, the pair rose from the level of 1.0886 (the level of 1.0886 coincides with a ratio of 61.8% Fibonacci retracement) to a top around 1.0991.

Today, the first support level is seen at 1.0908 followed by 1.0858, while daily resistance 1 is seen at 1.0991. According to the previous events, the EUR/USD pair is still moving between the levels of 1.0908 and 1.0991; for that we expect a range of 83 pips (1.0991 - 1.0908).

On the one-hour chart, immediate resistance is seen at 1.1006, which coincides with a ratio of 100% Fibonacci retracement - the first bullish wave. Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. The price is still above the moving average (100) and (50).

Therefore, if the trend is able to break out through the first resistance level of 1.0991, we should see the pair climbing towards the daily resistance at 1.1041 to test it. It would also be wise to consider where to place stop loss; this should be set below the second support of 1.0858.

Bearish outlook:

If the pair fails to pass through the level of 1.0991, the market will indicate a bearish opportunity below the strong resistance level of 1.0991. In this regard, sell deals are recommended lower than the 1.0991 level with the first target at 1.0908. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 1.0858.

However, stop loss has always been in consideration thus it will be useful to set it above the last double top at the level of 1.1041 (notice that the major resistance today has set at 1.1041).