EUR/USD has pulled back off the 1.15 area as expected but bulls remain in control of the short-term trend. Holding above 1.14 is crucial for bulls and holding below 1.15 is crucial for bears.
Green rectangles - topping patterns
Blue rectangles - support levels
EUR/USD has so far made a lower high relative to the 1.1570 made in early January. Breaking below the blue rectangle support areas will increase the chances of another sell off that will bring this pair below 1.13. Breaking above the red trend line resistance will increase the chances of breaking above the January highs.Price has been trading sideways for a few months now with no clear direction. We are closer to resistance now and that is why I favor the bearish scenario.
