Hello traders! The EUR/USD pair has just entered a consolidation phase. The double bottom has been formed near the 1.1700 and the double top near 1.1900 psychological levels. This is a 200 pip wide range-trading which is currently ongoing.
And as in any king of range-trading, we can expect the price to move either towards the support or resistance quite frequently. In this case, there is a high probability that the price will move towards the upside resistance rather than the downside support.
This is because of two factors, first is the breakout of the downtrend trendline and second is a clear rejection of the 50% Fibonacci retracement levels. Therefore, as long as 1.1780 support holds, EUR/USD should be expected to re-test the 1.1900 resistance area in the next couple of trading days. And only break below the 1.1780 level could invalidate the upside move scenario, in which case price is likely to head towards the 1.1700 support once again.
Bias: Sideways to bullish while above 1.1780
Potential Support Zone: 1.1780 – 1.1800
Potential Targets: 1.1900
Have a profitable trading!