EURUSD is bouncing as expected from our last analysis after the NFP announcement last Friday. Price is back testing the broken trend line support which is now resistance. Price is trading around the 1.2170 level. As long as price is below 1.2240, EURUSD is vulnerable to a move lower.
Yellow rectangle- major resistance
EURUSD is bouncing higher to back test the broken trend line. A rejection here will open the way for a move below 1.21. Support is at recent low of 1.2103 and resistance at 1.2185 and next at 1.2240. Price has started making lower lows and lower highs. The latest lower high is at the yellow rectangle area and as long as price is below this level, we remain pessimistic expecting a rejection in price.
