Technical analysis of EUR/USD for August 01, 2016
The EUR/USD pair broke resistance which turned to strong support at the level of 1.1105 last week. The level of 1.1105 is expected to act as major support this week.
The first support level is seen at 1.1160 followed by 1.1105, while daily resistance is seen at 1.1261.
Amid the previous events, the pair is still in a uptrend in ths short time, because the EUR/USD pair is trading in a bullish trend from the new support line of 1.1160 towards the first resistance level at 1.1261 in order to test it.
The price spot of 1.1261 remains a significant resistance zone. Thus, the trend will probably be rebounded again from the new double top as long as the level of 1.1261 is not breached.
In other words, sell orders are recommended below the spot of 1.1261 with the first target at the level of 1.1105
If the pair succeeds to pass through the level of 1.1105, the market will indicate a bearish opportunity below the level of 1.1105.
Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 1.1105 with the second target at 1.1015 and further to 1.0949 so as to retest the double bottom in the H1 time frame.
However, if a breakout happens at the resistance level of 1.1261, then this scenario may be invalidated.