EURUSD has pulled back below 1.14 and the 1.1350 support level towards 1.13. The pull back was much stronger than initially expected but price has stopped the decline right at the 61.8% Fibonacci retracement.
Red line - resistance
Green line - support
EURUSD has pulled back below the red trend line resistance that it broke last week. The weekly close was very bad and implies that the entire break out was a fake one. Bulls last chance to confirm that trend has changed to bullish and that the break out was not fake, is to see price start a new upward move from the 61.8% Fibonacci retracement level. Bulls now need to recapture 1.1370-1.14 resistance area. Breaking above this resistance area and holding above it will increase the chances of moving towards 1.15. If on the other hand price gets rejected at 1.1370-1.14 or breaks below 1.13 and stays below 1.13, then we should expect price to move towards 1.1140 over the next weeks.The material has been provided by InstaForex Company - www.instaforex.com