Technical analysis of EUR/USD for August 29, 2022

Overview :

The bullish trend is currently very strong on The EUR/USD pair. As long as the price remains above the support levels of 0.9972, you could try to benefit from the growth.

The first bullish objective is located at the price of 1.0052. The bullish momentum would be boosted by a break in this resistance (1.0052).

The hourly chart is currently still bullish. At the same time, some stabilization tendencies are visible between 0.9972 and 1.0088.

Together with the relatively large distance to the fast-rising 100-day moving average (0.9972), there are some arguments for a relief rally in coming months on the table.

The EUR/USD pair is at highest against the dollar around the spot of 1 USD since last week. The EUR/USD pair is inside in upward channel. Since three weeks The EUR/USD pair decreased within an up channel, for that The EUR/USD pair its new highest 1.0052.

Consequently, the first support is set at the level of 0.9972. Hence, the market is likely to show signs of a bullish trend around the area of 0.9972 - 1 USD.

RSI is seeing major support above 65% and a bullish divergence vs price also signals that a reversal is impending. According to the previous events the price is expected to remain between 1 USD and 1.0137 levels.

Buyers would then use the next resistance located at 1.0052 as an objective. Crossing it would then enable buyers to target 1.0088 (the double top - last bullish week).

Be careful, given the powerful bullish rally underway, excesses could lead to a possible correction in the short term. If this is the case, remember that trading against the trend may be riskier. It would seem more appropriate to wait for a signal indicating reversal of the trend.

The EUR/USD pair has plunged up for a fresh two weeks high. Prices pushed above a key retracement from a Fibonacci setup that spans from the lowest price of 1 USD (38.2% of Fibonacci on the hourly chart), for that buyers pulled the bid back-above that level by the end of the week.

Last week, the EUR/USD pair traded up and closed the day in the red area near the price of 0.9901. Today it rose a little, rising above 0.9972.

If the pair succeeds in passing through the level of 1.0052, the market will indicate the bullish opportunity above the level of 1.0052 in order to reach the second target at 1.0088.

In the very short term the general bullish sentiment is confirmed by technical indicators. Therefore, a small upwards rebound in the very short term could occur in case of excessive bearish movements.

Trading recommendations :

The trend is still bullish as long as the price of 0.9972 is not broken. Thereupon, it would be wise to buy above the price of at 0.9972 with the primary target at 1.0088. Then, the EUR/USD pair will continue towards the second target at 1.0137. We should see the pair climbing towards the next target of 1.0200. The pair will move upwards continuing the development of the bullish trend to the level 1.0200 in coming days.

Conclusion :

The EUR/USD pair increased within an uptrend channel from the prices of 0.9901 and 1$ since a week. The bulls must break through 1.0137 in order to resume the uptrend.