EOS price found support near $7.60 and recovered against the US Dollar. EOS/USD is likely to move higher towards the $9.50 and $10.00 levels in the near term.
Key Talking Points
- EOS price is trading with a positive bias above the $7.60 support area (Data feed of Kraken) against the US Dollar.
- There was a break above a key bearish trend line with resistance at $7.80 on the 2-hours chart of the EOS/USD pair.
- The pair is moving higher and it could trade further higher towards the $8.80, $9.50 and $10.00 levels.
EOS Price Analysis
There was an important downside move in EOS price from well above the $9.00 level against the US Dollar. The EOS/USD pair declined below the $8.00 level before buyers appeared near $7.60.
The chart above indicates that the price found a strong buying interest near $7.60, resulting in a fresh upward move. The price moved above the 23.6% Fib retracement level of the last decline from the $9.36 high to $7.60 low.
More importantly, there was a break above a key bearish trend line with resistance at $7.80 on the 2-hours chart of the EOS/USD pair. The pair also traded above the $8.20 level and the 100 simple moving average (2-hours).
It has opened the doors for more gains above the $8.50 level in the near term. An immediate resistance is the 50% Fib retracement level of the last decline from the $9.36 high to $7.60 low at $8.48. Above this, the price is likely to break the $9.00 resistance and test the $9.35 swing high.
A successful break above the $9.35 level could increase the chances of EOS hitting the $10.00 barrier in the near term.
On the flip side, if there is a downside correction, the previous resistance near $8.00 and the 100 SMA are likely to act as supports. Below $8.00, EOS price may perhaps retest the $7.60 support.
Overall, the current bias is positive as long as the price is above $8.00.
Trade safe traders and do not overtrade!