Weekly EURUSD analysis

EURUSD ended last week right on top of the major long-term resistance trend line and at important Fibonacci retracement level. As we explained in previous analysis when we were giving 1.18-1.1850 as target for the bounce, we also explained that this would be the most probable area to see the rally pause.

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Green line - major resistance trend line

EURUSD is at a major inflection point. An initial rejection and pull back towards 1.17 is justified. However recovering 1.19 price and staying above 1.18 would be a major win for bulls that could put 1.2130 into play. Trend is bullish. There is no sign of a trend reversal. There are some signs that point to a corrective pull back and another buying opportunity but not at a major top. For now we consider each pull back as a buying opportunity as we could next see 1.2130 before breaking above 1.2510. 1.12 remains key support for the bullish scenario.

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