At the end of last week EUR/USD reached a very serious level of resistance at 1.13, which is visible on the weekly time frame.
My expectations that the pair would fail to break above that level and start dropping again so far haven’t become a reality.
The pair stubbornly refuses to fall and is forming a flag instead, which can be seen when you look at the smaller time frames, such as the one hour and the four hour time frames. This flag will most likely continue to form for another day or maybe two, but in the end it’s quite possible for the pair to continue rising towards the resistance at 1.1550 – 1.1560, which coincides with (EMA)89 on the weekly time frame.
In case the pair does fall the first serious level of support is at 1.12.