EURUSD vulnerable to more downside at the start of next week

EURUSD remains in a medium-term bullish trend after bottoming at 1.11 and started making higher highs and higher lows. The break above 1.1350 was an important bullish sign and this back test is of similar importance.

analytics5d16f82b9bfd7.png

Green line - support trend line

Red rectangle - support area

EURUSD has tested this past week the 1.1350 level several times. Breaking below it will open the way for a move towards 1.13-1.1270. Bulls do not want to see price break below the green trend line otherwise our medium-term trend reversal signal will be canceled. So far price action is bullish because the RSI is getting relieved from overbought levels while price mainly moves sideways. Price remains above the previous high as this is now support. Resistance is at 1.14 10 and if broken I expect price to continue higher towards our longer-term target of the wedge break out at 1.17.

The material has been provided by InstaForex Company - www.instaforex.com