FX.co ★ Technical analysis of EUR/USD for March 12, 2023

Overview:

The EUR/USD pair broke resistance which turned to strong support at the level of 1.0613 yesterday. The level of 1.0613 coincides with a golden ratio (50% of Fibonacci), which is expected to act as major support today.

The Relative Strength Index (RSI) is considered overbought because it is above 55. The RSI is still signaling that the trend is upward as it is still strong above the moving average (100).

This suggests the pair will probably go up in coming hours. This support has been rejected for three times confirming uptrend veracity. Hence, major support is seen at the level of 1.0613 because the trend is still showing strength above it. The Relative Strength Index (RSI) is considered oversold because it is above 55.

At the same time, the RSI is still signaling an upward trend, as the trend is still showing strong above the moving average (100), this suggests the pair will probably go up in coming hours.

Accordingly, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 1.0613 with the first target at the level of 1.0701.

From this point, the pair is likely to begin an ascending movement to the point of 1.0701 (double top) and further to the level of 1.0745. The level of 1.0745 will act as strong resistance and the double top is already set at the point of 1.0701.

On the other hand, if a breakout happens at the support level of 1.0613, then this scenario may become invalidated.

Conclusion : We should see the pair climbing towards the next target of 1.0701. The pair will move upwards continuing the development of the bullish trend to the level 1.0745 in coming days. On the other hand, in case a reversal takes place and the EUR/USD pair breaks through the support level of 1.0613, a further decline to 1.0510 can occur. It would indicate a bearish market.