The EURUSD was unable to maintain its bullish momentum yesterday , topped at 1.3128 and closed lower at 1.3068...
By checking the 1 hour chart, the pair is under strong pressure, it formed head and shoulders pattern, bearish reversal in short term outlook , its first target already achieved around 1.3055,the next one around 1.3000/1.2960 levels, but overall outlook remains bullish as long as 1.3055 holds, a daily close below this level would mean that consolidation from 1.3171 is resuming and it would target 1.2740 levels, this level is supposed to contain the consolidation , but a clear break below this level would resume the long term bearish trend and target 1.2400/1.2000 levels,for the upside a daily close above 1.3150/170 levels is indeed to resume the bullish scenario toward 1.3500 levels.
Back again to 60 min chart, as long as the pair trades below 1.3115, eyes will be on 1.3000, to continue the bullish move , the pair needs to clear 1.3072 and 1.3115 first, stability above 1.3115 would weak 1.3139,and might surpass 1.3171, but in return stability below 1.3055 would increase the risk toward 1.2991 and 1.2950 levels!!
Fundamental focus today is on Existing Home Sales from United States at 02:00 PM GMT, any release above 4.82M would be good for USD and vise versa , anyway expectations are negative for USD today !!
Resistance 1.3110 1.3155 1.3200 1.3250
Support 1.3055 1.3010 1.2960 1.2910