EURUSD, “Euro vs. US Dollar”
In the H4 chart, EURUSD reached the support at the 0/8 level, rebounded from it, and right not the pair is trading above the 2/8 one. As a rule, when the price rebounds from the 0/8 level, the first target is the resistance at the 3/8 one, which means that the pair is going to test this level and may offer two possible scenarios. The first scenario suggests that the instrument may break the resistance and then continue growing towards the 5/8 level. This scenario is confirmed by yesterday’s growth. The second one implies that the pair may rebound from the resistance and then start a new descending to reach the support at the 1/8 level, which may be considered as a correction of the future uptrend. This scenario is hard to believe in, because most people on the market are expecting the price to continue moving downwards, but one shouldn’t ignore it. However, the “possible uptrend” scenario may be cancelled if the instrument breaks the 1/8 level. In this case, the instrument may continue trading downwards to reach the support at the -1/8 one.