EURUSD Breaks Key Trendline Resistance
Rising to as high as 1.3508, the EURUSD currency has garnered enough momentum to break through key resistance – presented by a descending trendline (1.4233-1.3791) in the 60-minute timeframe. The angled resistance level is coinciding with a more horizontal barrier at 1.3335 – placing more emphasis on downward momentum in the currency pair. As a result, a break above this level is key technically as it hints at a potential turn in the current rangebound scenario for the EURUSD.
Given that oscillators are bullish, we anticipate a move higher to initial hourly resistance at 1.3607 (38.2% fibonacci retracement level from 1.4233-1.3241. But, not before the currency pair is able to show an hourly close above the current support level of 1.3440 or yesterday’s session high. The level is technically important – with a break lower signifying thinner market conviction for further advances. If the price momentum wanes, and we see a close below the 1.3440, it is highly likely that the exchange rate is ready for a mild corrective wave lower – placing our focus on retest support barriers at the 1.3250 figure.
Stochastic oscillator has turned higher after hitting oversold marks at 15.14 – now trading slightly above 66.
Source: FXTrek Intellicharts