Blue lines- Fibonacci retracement levels
Green line- support trend line
Red line- previous resistance now support
EURUSD is trading around 1.1130. EURUSD reached the 61.8% Fibonacci retracement of the entire decline from 1.2348 and is now showing rejection signs. Price is pulling back from the recent high of 1.1276 made this week. Although EURUSD made new higher highs this week, price is turning lower to close lower than the previous week. The RSI is turning lower from overbought levels. A pull back towards 1.1090 where we find the red horizontal support (previous resistance) is justified. The pull back could be even bigger and price can even reach and test the green upward sloping support trend line. If price breaks below 1.1080, we should expect EURUSD to continue lower towards 1.09.
