EURUSD extended its bounce from 1.1554 to as high as 1.1944, breaking above 1.1879 resistance. Further rise to test test 1.2092 resistance would likely be seen in the coming days, a breakout of this level will confirm that the uptrend from 1.0340 (Jan 3 low) has resumed, then next target would be at 1.2500 area.

On the downside, as long as 1.2092 resistance holds, the bounce from 1.1554 would possibly be correction of the downtrend from 1.2092, and another fall towards the resistance-turned-support trend line on the weekly chart is still possible. Near term support is at rising trend line on the daily chart. A clear break below the trend line support could bring price back towards 1.1554 support. Below this level could signal resumption of the downtrend from 1.2092.

This article is written by Franco Shao, a senior analyst at ForexCycle.

© 2017 Copyright Franco Shao - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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