EUR/USD is expected to trade with a bullish bias above 1.1255. The pair surged up to 1.1303 overnight before entering a mild consolidation. Currently it keeps trading on the upside while being supported by the ascending 20-period moving average. Strong upward momentum is also suggested by the relative strength index, which is well directed above the overbought level of 70. Therefore, the pair is expected to re-test the first upside target at 1.1340 before proceeding further to 1.1365.
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 1.1340 and the second one, at 1.1365. In the alternative scenario, a short position is recommended with the first target at 1.1220 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 1.1175. The pivot point is at 1.1255.
Resistance levels: 1.1340, 1.1365, 1.1410
Support levels: 1.1220, 10.175, 1.1100