EURUSD broke above the 1.1462 resistance and 61.8% Fibonacci retracement yesterday and reached 1.15. Recapturing 1.15 will be an important win for bulls but with the Daily RSI in overbought levels similar to our last important top at 1.1570 back in early January I would not chase the bullish side of the market here.
Green rectangles - possible top setup similar to January 10th
EUR/USD is now challenging the 78.6% Fibonacci retracement. A pull back towards 1.1450 would be healthy for bulls in order to gather momentum for another strong leg for a higher high. If however price breaks below the red trend line resistance, then there are high chances we see a top similar to the one back in early January at 1.1570 and a new leg down starts. The 1.14 level is key support now as 1.13-1.1320 once was. Breaking below 1.14 will be a very bearish sign, implying that a lower high is in and we are starting the next leg lower towards 1.10-1.11.
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