Overview :
The EUR/USD pair broke resistance which turned to strong support at the level of 1.2051.
The level of 1.2051 is expected to act as major support today. From this point, we expect the EUR/USD pair to continue moving in a bullish trend from the support levels of 1.2051 and 1.1992.
Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. Consequently, the first support is set at the level of 1.2051 (horizontal green line).
So, the market is likely to show signs of a bullish trend around the spot of 1.2051/1.1992. In other words, buy orders are recommended above the spot of 1.2051 or 1.1992 with the first target at the level of 1.2117; and continue towards 1.2188 (the weekly resistance 1).
This would suggest a bearish market because the moving average (100) is still in a positive area and does not show any trend-reversal signs at the moment.
Amid the previous events, the pair is still in an uptrend, because the EUR/USD pair is trading in a bullish trend from the new support line of 1.2051 towards the pivot point level at 1.2008 in order to test it.
The pair is expected to drop lower towards at least 1.2008 with a view to test the weekly pivot point. Also, it should be noted that the weekly pivot point will act as minor resistance today.
If the pair succeeds to pass through the level of 1.2008, the market will indicate a bullish opportunity below the level of 1.2008, with the targets of 1.2117; and continue towards 1.2188 - then 1.2243 (high price).
On the other hand, if the EUR/USD pair fails to break through the resistance level of 1.2117 this week, the market will decline further to 1.1942.