The EUR/USD has been bullish, but found resistance at 1.1445 this week and flattened during the 5/14 session. As we get into the 5/15 US session, it is testing a near-term support. Let’s follow up on the pair.
In the 1H chart we can see that the 1.1340 level has provided support during the 5/13 and 5/14 sessions. Price is just above that as we get ready for the 5/15 US session. Price is also testing the 50-hour SMA. Furthermore, the 1H RSI is tagging 40, and if the market were to maintain the prevailing bullish momentum throughout the week, the 1H RSI should hold above 40 for the most part.
Now, even if price breaks below 1.1340, we should not turn bearish. There will be another set of key support around 1.1280-1.13. In the 1H chart, this will represent a rising trendline down to the 100-hour SMA. It will also be a rising trendline from the 4H chart. Now, a failure to push back above 1.14, with a break below 1.13 does open up some short-term bearish outlook towards the 1.11 and 1.10 area, but our medium-term bullish trend remains in tact unless EUR/USD breaks below 1.10 and the rising trendline coming up from the 1.0530 low.
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