The downtrend line extending from 1.3700 was broken when we had daily closure above 1.3075, this opened the way towards 1.3106 then 1.3250.
Price Levels around 1.3250 represent a strong resistance for the EUR/USD pair as it corresponds to previous tops (including the high of previous May). However, esterday we had a bullish engulfing daily candlestick which ensures the bullish strength this week.
Although the pair expressed bullish daily closure at 1.3244 on Thursday which is continuation signal, the precceeding movement is probably requiring some retracement towards 1.3110.
On Friday, the pair topped at 1.3287, then declined to 1.3190 not matching the positive money flow sentiment at around +15%, having a weekly closure at 1.3217, then today we have another bullish trial.
A bullish breakout above 1.3100 opened the way towards 1.3250 directly.
The pair has a prominent support level at 1.3100 that was established last week at the depicted broken price range.
Price action should be watched at 1.3100 for a possible BUY entry with SL located below 1.3045.
Price Level 1.3225 needs to be broken in order to initiate retracemnt. Otherwise, fixation above it will bring more bullish strength to the market aimimg at 1.3350 initially.
