EUR/USD aiming for 1.3860

EUR/USD has been grinding to higher ground for the past few hours, getting into close contact with its daily peak at 1.3818. After the strong rebound from an intra-day low at 1.3700 earlier in Europe, the cross has remained on a steady upward pace, and pull-backs have been shallow. Current price lies at 1.3800, a rise of 56 pips or 0.40% on the day.

According to Fan Yang, Chief Technical Strategist at FXTimes: “The 1H chart shows the momentum remaining bullish with the RSI above 40, however a bit of a lost in momentum reflected by the bearish divergence. 4H chart does not even show bullish momentum, but the RSI did remain above 40, and being above 60 reflects bullish bias. If the market breaks above the current target of 1.3860, we can see the RSI reach above 70 for a bullish momentum breakout signal”.

“The daily chart shows the immediate target above 1.3860 is 1.3980, 78.6% retracement level, and a declining trendline, which might actually be lower, close to the 1.39 level, so anticipate resistance at this level as well. Above this 1.40 area, 1.4280 is our next target (Nov. 2010 high). For the bearish scenario, a decline back towards 1.3550 can be expected if the market breaks below 1.37, but a more significant bearish scenario only opens up below 1.34”.

source: http://www.fxstreet.com/