EURUSD stays flat – But upside breakout expected.
This article is originally referred from Orbex Technical Analysis.
The EURUSD currency pair was seen continuing to trade below the 1.1730 level of resistance for the most part last week.
Price action is however showing signs of a bottoming pattern taking shape.
After posting modest gains to 1.1730, price action was seen giving up the gains.
The short squeeze saw price quickly recovering.
However, for the bullish momentum to take over, price action needs to breakout past the 1.1730 level.
This could potentially keep price action to the upside targeting 1.1960 – 1.1920.
To the downside, the currency pair could however remain trading sideways within 1.1730 resistance and 1.1540 level of support.
As long as price action remains within this level, there is a higher chance that the currency pair could continue to post forming a bottom pattern at these levels.
A breakout below 1.1540 could however trigger further losses in the currency pair which could eventually push the euro to post fresh lower lows.
Original Source: Orbex Technical Analysis