The price is approaching the previous high from 1.1289 and will try to break this resistance and to continue the upward movement. As you can see from the H4 chart, the price is trading just above the 61.8% retracement level and if will make a consolidation here then the price is expected to go higher with first target somewhere at 1.5 or higher but this scenario depends on the US dollar weakness, if US dollar index will break the uptrend line (important support level) then we’ll have an extended correction on US dollar.
The rate is trading above the median line (ML) of the ascending pitchfork, you can see that the price has failed to reach the lower median line (LML), this is bullish signal, now I’m expecting to see the price at the upper median line (UML). As long as the price is trading inside of the ascending pitchfork, the pair is bullish.
By Olimpiu Tuns – Owner and Market Analyst at http://ovtbusiness.com/