Wednesday EURUSD moved in bullish bias and it seems that this pair is going to keep bulls at this chart because while EUR is getting stronger due to the government bonds yield differential decrease between the US and Germany, USD is weakening due to commodity prices. In long term picture, the pair is climbing up the ascendant channel along with the Andrews’ pitchfork pattern. The support rests at 1.12780 with resistance at 1.13720 which both lines are above the monthly pivot point at 1.12030. The indicators are all showing price growth for now. The MACD indicator is in neutral zone, the RSI is above 50 level and the ADX is showing strong buyers. The EMA of 10 is crossing the EMA of 50 and it is located above the pivot point and close to the lower line of Andrews’ pitchfork. The resistance level breakout is a good sing for buyers. However, in longer term trade, the pair may not even hit the resistance level and fall towards 1.1260. Traders need to wait for a better chart setup.
Technical analysis of EURUSD dated 28.04.2016
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