FX.co ★ August 31, 2020 : EUR/USD daily technical review and trade recommendations.

The EUR/USD pair has been moving sideways within the depicted expanding channel since August 3.

Previously, a temporary resistance level was formed around 1.1900 which prevented further upside movement for some time and forced the pair to have a downside pause towards 1.1715.On August 12, a new short-term uptrend line was initiated around 1.1715 which allowed the EURUSD pair to achieve a new breakout above the previously mentioned resistance zone.

On August 19, the mentioned breakout turned to be a buying trap. This enhanced the bearish side of the market towards 1.1800 where significant BUYING pressure has been demonstrated since then.

Currently, the EUR/USD pair is demonstrating signs of strength being manifested on the chart by achieving H1 candlestick closure above 138% Fibonacci Expansion.

Any downside pullback towards the previously mentioned broken resistance level around 1.1900, now acting as a support level, should be considered for a BUYING opportunity.

Initial target would be located around 1.2000 where the upper limit of the current movement channel comes to meet the pair.

On the other hand, Stop Loss should be placed just below 1.1865.