EUR/USD as expected by our last analysis is pulling back for a back test of the break out area. Holding above 1.17 will be critical for the medium-term trend. A false break out and a move below 1.1670-1.1680 will be a very bearish sign.
EUR/USD is pulling back towards 1.1730-1.17 which was the break out area and previous resistance. This is now support and bulls should defend it and push prices higher from current levels. This happening is our primary scenario. However is support fails to hold and price breaks below the upward sloping blue trend line at 1.1690, we should expect EUR/USD to move much lower and we change focus away from our primary bullish scenario. If support fails to hold our target for a pull back is at 1.16. If prices bounce from current levels I believe we can see prices above 1.18 this week.
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