Topic: EUR/USD: still range-bound upside bias, Technical Analysis Liga Forex
The EUR/USD pair continues moving within a range-bound consolidation which began on the 4th July. The exchange rate pulled back temporarily after spiking higher yesterday and almost reaching the range highs.
Due to the fact that the mid-term trend is bullish, the pair will probably eventually breakout to the upside. There is, however, formidable resistance lying directly above from the 50-day MA and the 200-day MA at 1.3645 and 1.3675 respectively. Even if these obstacles are cleared the major trend-line drawn from the 2008 highs is situated at around 1.3695.
Therefore, for a strong continuation signal higher, I would want to see a break above 1.3715, confirming the clearance of the 2008 trend-line. This would then target the R1 pivot at 1.3760.
Analysis by: Liga Forex Analyst