EURUSD is trading around 1.1367. Earlier today EURUSD reached as low as 1.1323 very close to the short-term upward sloping support trend line. In our previous analysis yesterday we mentioned that a pull back towards this trend line is justified but we remain bullish as long as we trade above it.
Red line - support
Black lines -Fibonacci retracements
We expected a pull back towards 1.1310-1.1320 and we got a low at 1.1323. Price seems to respect the red trend line support. Short-term resistance is at 1.1396. If bulls manage to recapture 1.14, then the chances of a new move higher above 1.15 will increase. Bulls do not want to see price break below the red trend line. That would bring selling pressures for EURUSD and it could lead to a decline towards the 61.8% Fibonacci retracement level at 1.1260.
