EURUSD remains inside the medium-term bearish trend from the 1.2265 highs. The 1.12-1.13 area was our expected target and possible turnaround level because here we also find the long-term 61.8% Fibonacci retracement of the entire rise from 1.0635 to 1.2350.
Because of the short-term bullish divergence signals, when price was around 1.12-1.1250 we turned bullish and said that the downside was limited and price should bounce higher towards 1.1350-1.1450. Price made a shallow bounce towards 1.1370 and for the last few weeks it mostly moves sideways. This is not a good sign for bulls. This price action increases the chances of seeing a new lower low below 1.12. Key resistance remains at 1.1370 and next at 1.1425. At current levels I prefer to be neutral EURUSD.
