EURUSD made a high around 1.1350 and is reversing now lower. Why is price turning from that point. In our previous analysis we noted that a key resistance area is found around 1.1325 and bulls want to recapture this level. On the other hand a rejection here would be a bearish sign.
Why we said that was a key resistance? Because there we find the 61.8% Fibonacci retracement of the entire move lower from 1.1422. Price reached yesterday the key resistance area and today we see price getting rejected. It is important for bulls to make now a higher low and not break below 1.1170. Bulls will need to recapture the 1.1350 level and stay above it in order to hope for a move above 1.1430.
Bears need to break below the 61.8% Fibonacci retracement of this latest upward move. This support level is at 1.1235. Breaking below this level will increase dramatically the chances of for a move below 1.1160. As long as price is above 1.1235 bulls have hopes for creating a higher low and getting the necessary fuel for a move above 1.1350.
