- EUR/USD bulls are in full control for the 6th consecutive day as they are putting on hold the main bear trend. The market is challenging a multi-month bear trendline and the 61.8% Fibonacci retracement of July 9-August 15 bear move which is near 1.1600 level. A sustained bull breakout above 1.1628 swing high would be crucial as it would create a higher high, which is a negative sign in a bear trend.
- In addition, the daily Relative Strength Index (RSI) is trading into positive territories at about 53, the Moving Average Convergence Divergence (MACD) is also in the green and the Full Stochastics Oscillator is moving to the upside without being in overbought territories. All indicating that while the main trend is bearish, traders will have to open up to the possibility that this pullback might be transitioning into a bullish reversal on a breakout above 1.1628 swing high. Bullish targets are located near 1.1667 and 1.1750.
- A sustained bear breakout below 1.1500 would invalidate the bullish bias.
Spot rate: 1.1608
Relative change: 0.33%
High: 1.1618
Low: 1.1553
Main trend: Bearish
Short-term trend: Bullish above 1.1500
Resistance 1: 1.1628 August 8 high
Resistance 2: 1.1667 August 2 high
Resistance 3: 1.1750 supply level
Support 1: 1.1572 July 19 low
Support 2: 1.1542 current daily high
Support 3: 1.1506 June 21 low
Support 4: 1.1483 intraday swing high (August 10)
Support 5: 1.1445 last week high
Support 6: 1.1430 August 14 high
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