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08.07.202017:30 Forex Analysis & Reviews: EURUSD back tests triangle and bounces off support

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EURUSD yesterday back tested the key short-term support area of 1.1265-85. This was once resistance and is now support. The bounce off the support level and the recapturing of 1.13 are bullish signs.

Red line - resistance

Green line- support

EURUSD broke above the upper triangle boundary, pulled back as a back test and is now bouncing to new higher highs. The RSI is lagging behind and we should pay close attention to this indicator as a bearish divergence would make us very cautious. If the RSI follows and makes new higher highs as well, then we should expect this up trend to continue and finally see levels above 1.14. Trend remains bullish as long as price is above yesterday lows. As we explained in our weekly analysis, EURUSD bulls need to recapture 1.13 and stay above it on a weekly basis.

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