EURUSD has turned once again lower below 1.22. Our expectations over the last few sessions were bearish. We warned that at current levels we prefer to be neutral if not bearish. Price has showed some warning signs for bulls as the RSI was providing bearish divergence signals.
EURUSD has support at the red trend line at 1.2160. Breaking below this level will increase chances of reaching our first pull back target of 1.2050. Resistance is at 1.2218 and any move above this level will be a bullish signal and we could see a push higher towards 1.2250-1.23. I believe that EURUSD is in the process of starting a bigger pull back since I think that it has completed the entire upward move from 1.17 and it is time to at least retrace it.
