The big picture is that EUR/USD is still trending up, although the price could be slowly starting to reverse to the downside.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
This analysis was done on MetaTrader 4.
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Analysis Details:
EUR/USD symbol on the MT4 platform
Type: Bullish
Key support levels: 1.1780, 1.1772, 1.1753
Key resistance levels: 1.1850, 1.880
Price Action:
The big picture is that EUR/USD is still trending up, although the price could be slowly starting to reverse to the downside. This is because the 127.2% Fibs at 1.1957 was rejected on August 18, followed by the rejection of the 88.6% Fibs at 1.1880. But while the price could be getting ready to reverse to the downside, the probability remains in favor of the uptrend.
Even if there will be a reversal down, a correctional wave up can still be expected. This is because the 1.1180 support level, confirmed by 200 Simple and Exponential Moving Averages on the August 14, remains valid. There was a spike produced below the support although 4h candle failed to close lower, making the bottom of the spike at 1.1753 a key level to watch.
The current price action shows that there was a break above the downtrend trendline, as a result, we can expect a small corrective move up, potentially targeting 1.1880 resistance area confirmed by 88.6% Fibs and 50% Fibs applied to the last wave up where higher high was produced. Only 4h break and close below 1.1753 will invalidate bullish forecast and EUR/USD could be starting a downside reversal much sooner than expected.
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