Violet lines- Fibonacci retracements
Black line- neckline support
EURUSD is trading around 1.0715. Price moved as high as 1.0750 earlier today. Short-term trend remains bullish but the bullish trend has paused around the 38% Fibonacci retracement. Will we see a rejection? If price gets rejected at the 38% level we will have a lower high formed and it will not be good for bulls. The RSI has reached once again overbought levels. If the overbought RSI is combined with a rejection at the 38% retracement, this would be a bearish sign. Bulls want to see EURUSD stay above 1.0690 and not get rejected at the 38% level. Upside bounce potential is at 1.0835 where we find the 61.8% retracement. This is the most important resistance.
