EURUSD is challenging the major resistance at 1.1830-1.1850 after bouncing off key support at 1.16 yesterday. Yesterday's long lower tailed candle confirmed the importance of the 1.16 support area that we have identified for some time.
Green rectangle - support
Price so far has touched the resistance trend line but has not yet broken above it. The momentum favors bulls. However price remains trapped inside a tightening trading range that looks like a triangle pattern with lower highs and same lows. Traders should keep a close eye on the 1.16 level in case it is broken and at the 1.1850 level as it is key resistance. If bulls manage to recapture 1.1850-1.1870 then we can see new highs over the next couple of weeks. A rejection here could bring price back to 1.16. All scenarios are still open. That is what the US election volatility brought and that is why we said that it was time traders stayed calm and patient for the dust to settle. We continue to focus on the weekly closing level to get more information for the coming weeks.
