- EUR/USD has been on a great uptrend on the daily chart but on Friday the pair is 0.48% lower.
- There are some key levels on the monthly chart that could provide some resistance.
EUR/USD monthly chart
On the lower timeframes, there are no support and resistance levels close by. This means that we may have to jump a few timeframes higher to see when the price was at this level last to determine where it could meet some resistance.
Looking at the chart below, the price hit some support back on 1st June 2010. The low print was at 1.1877 and the current point where the pair met some resistance today was at 1.1908. The key here is if the price manages to close above the level from 1st June. At the moment there is an obvious rejection and the price of EUR/USD has hit a low of 1,1779 on Friday.
There are also two schools of thought on the trendlines in red. If you include all the price action from each wave high the price has not closed above the trendline on the weekly chart. But if you use the most common touch system and the trendline is through the shadows (wicks) the price would have already closed above the trend line on the daily timeframe. Both ways could be used by a technical analyst but if you are drawing your primary trendlines by the book, they must include all of the price action.
Both the indicators are now bullish on the monthly timeframe. The Relative Strength Index is above 50 and the MACD histogram is green. The signal and lagging line from the MACD are both above the mid-level which is another bullish sign. Overall it would not be a surprise if there was a small dip in the pair but the trend is now looking to change and if the light purple line gets breached it would make a higher low higher high wave pattern and confirm this.