EURUSD has pulled back towards 1.1350 as a back test as expected by our previous analysis. This is the higher low bulls need to see. Price should start from current levels its next leg up above 1.14-1.1450 otherwise there is a danger of a fake break out and a new wave down towards 1.12.
Green line - support
Black lines - expected path
Blue line - RSI resistance (broken)
EUR/USD has broken the red trend line resistance and is back testing it from above. This red trend line is now support. If trend has reversed to the upside then price should bounce off the red trend line to new highs. If this was a fake breakout then we should expect a shallow bounce and new lows below 1.1360. Support is at 1.1360-1.1350 and resistance at 1.1415. A four hour close above 1.1415 would be a bullish sign for EUR/USD and will increase the chances of seeing 1.15 dramatically.
The material has been provided by InstaForex Company - www.instaforex.com
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