The EURUSD corrected higher a bit yesterday, topped at 1.3139 and closed at 1.3112!!
In the medium term outlook the pair trades now at crossroad as shown on the weekly chart below, a clear break above 1.3150/200 area could lead for major change and target 1.3500 levels, above 1.3500 will target 1.5000 levels, a rejection from 1.3150/200 levels followed by a daily/weekly close below 1.3000 would threat 1.2740 levels, however this level is strong and able to contain any bearish correction, losing 1.2740 with 2 or 3 weekly closes below this level would resume the long term bearish trend and target 1.2000 levels , most likely would form a lower leg below 1.1875 - 2010 low - before attempting to break above 1.3500 levels !!
The short term outlook is bullish as intraday time frames suggest , but be careful , H1 RSI starts losing momentum , to resume the bullish momentum , we need a break above 1.3171 - recent high - stability below this level would push toward 1.2991 levels !!
Yesterday the pair found support at 1.3118, serves as resistance now, to attack 1.3171, 1.3118 should be taken out , stability above 1.3118 is supposed to weak 1.3139 !!!
Below 1.3118 we have 1.3095 , losing 1.3095 would test 1.3042, the last support level for bulls is 1.2991 !
Fundamental focus today and tomorrow is on EU Economic Summit , this summit is supposed to be an early warning about euro's health in the future, most likely outcomes will direct/affect the pair for the next few coming weeks !! also focus will be on Spanish 10-y Bond Auction !!!
From United States , we have Jobless Claims at 12:30 PM GMT, we also have Philadelphia Fed Business Outlook Survey and Existing Home Sales at 02:00 PM GMT !!
Main support and resistance levels:
Resistance 1.3100 1.3145 1.3190 1.3270
Support 1.3050 1.3010 1.2920 1.2825