EURUSD got rejected at the 38% Fibonacci retracement level last week and pulled back from 1.0863 to 1.0810. Price is now bouncing again but bulls need to push price above recent highs in order to hope for a bigger move higher.
Black line -resistance trend line
Red rectangle - resistance area
Green rectangle -target if red rectangle is broken
EURUSD could very well make a short-term bottom at 1.0810. Confirmation for a bottom will come if price breaks above the red rectangle resistance area. This will increase the chances for a move towards the green rectangle area. Support is at 1.0810. If the RSI breaks above the black resistance trend line, then the chances for a move higher increase. My preferred scenario now is a move towards 1.09-1.0925 before the next leg lower.
