FX.co ★ EUR/USD Intraday Technical Analysis

After a 3-day strong acceleration of the spot rate, testing the upper limit of its medium term bullish channel at 1.2450 the price seems to initiate a decline. A return to the intermediate support of this one is possible but a break through these levels will release good potential and initiate a more violent bullish trend.
Technical indicators do not provide clear signals but are approaching overbuy zone supporting the assumption of a decline. Bollinger bands are much discarded as a result of a strong increase these days. Stabilization is expected in a short term. Moreover the superior band strengthens the upper limit of its channel.
There are two ways to intervene: the first one is to try a ”buy stop” and buy as soon as the spot rate has broken through its resistance of 1.2450 with the 1st objective at 1.2510. The second one is to try a sell position at the upper limit of its resistance at 1.2450 with the first objective at 1.2390.