A good trend on EURUSD that started from 1.2660 will face a serious obstacle soon- resistance of 1.3140. Earlier (in September and October) EURUSD pair made two attempts to overcome this level of resistance, but both ended unsuccessfully.
First two trading days of this week were very successful for euro and the fast growth is continuing. However along with the growth the possibility of technical correction increases, which may be provoked by indicated level of resistance.
An important factor of following events is the correlation of demands to sales at this level. There is a possibility that after reaching this level a large volume of Euro will be bought, which will increase abrupt breakdown of level of 1.3140. This can be either a fake breakdown or a “right signal”.
Thus the situation may develop in three directions. First: the pair approaches the area of resistance of 1.3140, and a planned rebound from the level to correction or consolidation towards current trend will happen. Second: the pair will break down abruptly the level of resistance and within two hours will go back lower than the level and will be actively sold. Third: the pair will continue climbing up slowly and gradually throughout the level of resistance, as it was done on Monday and Tuesday of this week.
Unfortunately at the moment it is very hard to determine how the EURUSD pair will conduct in this area. The possibilities of developments are almost identical. However common market sentiment which is more on the positive side supposes the development with breakdown and movement to the next tops.Social button for Joomla