EUR/USD remains trapped inside the triangle pattern below critical resistance of 1.14-1.1420 and above the 1.13 support. So far break outs to the upside have failed to materialize and resulted in pull backs towards 1.13. Nevertheless each time we saw price pull back towards 1.13 support was respected.
Green line - major support
Black dots -resistance
Red dots -trend change level
EUR/USD has been in a down trend since February. For the last month price has shown stabilization and has stopped the decline. There are bullish divergence signs in the RSI on the Daily time frame. Moreover EUR/USD has reached and bounced off the 61.8% Fibonacci retracement level of the rise from 1.0340 to 1.2555. This an important Fibonacci area of support and a good candidate for a trend reversal.
