EUR/USD got rejected at the upper trend line resistance of 1.14 on Friday and pulled back towards 1.13. Price is now bouncing back up again but so far we have no break out. Longer-term trend remains bearish. Short-term trend is neutral.
Red line – major resistance
Green line – major support
EUR/USD is challenging Ichimoku cloud resistance but even if it breaks above the cloud, the most important resistance to break is the red trend line. So far price has been rejected twice. Will we see a third and final rejection or will we see a breakout and a move to 1.16? As long as we trade below last week’s highs bears have the upper hand. Important short-term support is found at Friday’s lows. Breaking below this level will push price below the green trend line support and most probably towards 1.11-1.12. Being trapped inside this triangle offers no clear view for the medium-term trend in EUR/USD. Traders need to be patient.
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