EUR/USD visited again our first bounce target area and 38% Fibonacci retracement. This area of 1.1340-1.1350 is important short-term resistance. Breaking above it will open the way for a move towards 1.14.
Red line - major trend line resistance
Blue rectangle - short-term resistance
Black rectangle - bounce target if blue rectangle is broken
Black lines - bullish divergence
EUR/USD bounced again as expected but price only managed to reach the 38% Fibonacci retracement level. Bulls need to break above the blue rectangle in order to hope for a bigger bounce towards 1.14. The RSI continues to provide a bullish divergence while being supported and making higher highs and higher lows. We are in a consolidation/correction phase and I would prefer to be neutral or bullish, waiting for higher levels to try a short position, where risk reward is better. For the medium-term trend to change price would need to recapture 1.15 and stay above it.
