Yellow rectangle- key resistance
Blue line- support trend line
EU50 is under pressure. Price is trading around 4,354 after making another high inside the yellow rectangle area around 4,400. Price got rejected once again and we now expect price to move towards the blue support trend line. EU50 has tested this resistance area and got rejected three times, we do not expect to see a fourth. Next time EU50 is again around 4,400 we expect price to break above this triple top resistance area. Recent price action has confirmed the importance of the resistance area here. In the near term we see justifications of a pull back towards the trend line support around 4,250.
