EUR/USD after moving above 1.15 is now back towards the breakout area as expected. This is a pullback and backtest of the breakout level to confirm the bullish trend EUR/USD is in. If price does not bounce off this area, then the break out was a fake one and there is danger of moving back below 1.14 towards 1.13.
Red downward sloping trend line - resistance (broken)
Black line - trend line support
Green line - RSI support trend line
EUR/USD should find a bottom in this area which was once resistance and now support. For the bullish scenario to come true, bulls will need prices to start bouncing and recapturing 1.15 once again. If price fails to hold above 1.1450-1.1420 area we might see another short-term sell off towards the black trend line support at 1.1320. Our target remains near 1.17 for the longer-term as long as price holds above 1.13.
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