EUR/USD has reached our bounce target area of 1.1280-1.13. The resistance is important here. If we see a rejection and a break below 1.1250, we should then expect 1.12 to be challenged. Yesterday 1.1250 was challenged but support was respected.
Orange rectangle - resistance area
Red line - major resistance trend line
Green line - trend line support
EUR/USD has entered my resistance area. Inside this area the chances for a bearish reversal are high. Breaking above it will open the way for a move towards 1.14 and the major red trend line resistance. Yesterday I mentioned the importance of the short-term support at 1.1250. It was tested and support was retained. That is why prices continued higher towards 1.13. Price has reached the 50% Fibonacci retracement of the last leg down and got rejected. Support remains at 1.1250 and we should also keep a close eye on the RSI blue trend line support. Breaking below it will be the early sign of a short-term trend reversal back to bearish.
The material has been provided by InstaForex Company - www.instaforex.com
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