EUR/USD: En-route to 1.13 post 3rd trendline touch

By FXStreet FXStreet (Bali) – EUR/USD has been bet higher since the get go of the Asian session, as the risk aversion worsens the mood across the region, accurately translated in a sea of red across all Asia-Pacific benchmark stock indexes.

Ascending trendline caps downside

Looking at the Euro vs US Dollar from a technical standpoint, an ascending trending (3rd touch tends to be respected) coming off Aug lows base has been able to provide an anchor for prices, reversing the 4 consecutive days of losses as risk conditions temporarily stabilized.

EUR/USD technicals

The Asian bullish move has broken above the pair’s immediate resistance area at 1.1260, allowing traders to set their sight on the next upside target of 1.13, with a bullish resolution extending the scope for a test of 1.1350/60, which would coincide with today’s ADR 14, and should see the momentum potentially receding, dependent on market conditions, as usual. On the downside, as long as the pair can trade above 1.12, solid base now, buyers should be the dominant force short term.
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Source:: FX Street