FX.co ★ Technical analysis of EUR/USD for August 31, 2020

Overview :

The EUR/USD pair broke resistance which turned to strong support at the level of 1.1804. The level of 1.1804 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 1.1754 and 1.1885. 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 1.1804 (horizontal black line). So, the market is likely to show signs of a bullish trend around the spot of 1.1804. In other words, buy orders are recommended above the spot of 1.1804 with the first target at the level of 1.1860; and continue towards 1.1885 (the weekly resistance 1). Next objectives will be probably set at 1.1919 and 1.1966 which coincideds with the double top in the H1 time frame. 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. On the other hand, if the EUR/USD pair fails to break through the resistance level of 1.1885 this week, the market will decline further to 1.1805. The pair is expected to drop lower towards at least 1.1711 with a view to test the last bearish wave.