Time Frame: H4
R3: 1,2753
R2: 1,2579
R1: 1,2481
PP: 1,2307
S1: 1,2209
S2: 1,2035
S3: 1,1937
According to the previous events, the price is still located between 1.2307 and 1.2480.
The EUR/USD pair has broken the resistance level and turned towards the support level near the two week point of 1.2307 (July 31, 2012). Therefore, the pair has already formed a strong support at 1.2307. Moreover, having failed to close below 1.2307, the pair started showing a bullish reaction at this level. It is necessary to mention that these levels coincide with strong levels for bulls on H1 / H4 chart; the pair has also formed a strong support at the level of 1.2307. So, the pair will move upwards which is a convincing fact; the structure of the upside movement looks as non-corrective indicating a bullish opportunity above 1.2307. This can be a good sign for buy deals above 1.23 with the first target at 1.2383 initiating an uptrend in order to continue the bullish mood towards the point of 1.2453 and further to 1.2555. If the trend breaks the weekly resistance-1- (1.2420), then the pair will go upwards in these targets. However, it should also be noted that the price is still between 1.2480 and 1.2307, as the Stochastic and the last strong resistance level are still able to begin a downtrend at this level. So the market indicates a bearish opportunity at the level 1.2580 on H1 chart with the first target 1.2403 and continues towards 1.2310.
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