Technical analysis of EUR/USD for October 03, 2016

Technical analysis of EUR/USD for October 03, 2016

Overview:

The EUR/USD pair continues to move upwards from the level of 1.1219. Last week, the pair rose from the level of 1.1200 to the bottom around 1.1246.

The level of 1.1200 coincides with 50% of Fibonacci, which is expected to act as major support today. Since the trend is above the 50% Fibonacci level, the market is still in an uptrend. From this point, the EUR/USD pair is continuing in a bullish trend from the new support of 0.6615. Currently, the price is in a bullish channel. According to the previous events, we expect the EUR/USD pair to move between 1.1219 and 1.1261. On the H4 chart, resistance is seen at the levels of 1.1261 and 1.1280. Also, it should be noticed that, the level of 1.1219 represents the daily pivot point. Therefore, strong support will be formed at the level of 1.1219 providing a clear signal to buy with the targets seen at 1.1219. If the trend breaks the price at 1.1219 (first resistance) the pair will move upwards continuing the development of the bullish trend to the level 1.1280 in order to test double top. However, stop loss is to be placed below the level of 1.1181.

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