After initially falling Last week, EUR/USD started to consolidate and found support at 1.3512, and resistance at 1.3575. This week, it respected the 1.3512 support again, and traders are pushing EUR/USD above the 1.3575 resistance, seeking to form a price bottom.
EUR/USD 1H chart 6/16
The prevailing trend has been bearish since EUR/USD failed to push above 1.40 in May. Therefore, we should not be so fast to call this a price bottom until further confirmation. One such confirmation could develop from a subsequent pullback from the current breakout. 1.3550, maybe with elbow space to 1.3540 , could be key – it is the central pivot area of the consolidation, where we saw support and resistance.
If price falls, but holds above 1.3550, the price bottom would be a stronger base for a bullish attempt. A break below 1.3550 however, would put the focus back to 1.3512, 1.35, and the 1.3476 low on the year.
Looking at the bullish chart, we can see that a bullish breakout would expose the 1.36 handle and the 1.3676 resistance. A break below the 1.3512, 1.35, and 1.3476 low would open up the 1.3295-1.33 support area from Nov. 2013.
EUR/USD Daily Chart 6/16
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