Hello traders! EUR/USD trend remains bearish with the recent bottom formed at 1.1612. Still, the price remains under the selling pressure because price struggling to break above the 1.1755 resistance area, which previously acted as the support. At the same time, the downtrend trendline is being rejected, suggesting the validity of the downtrend.
This is a very tricky price action because the resistance is being rejected, but at the same time, the support is also being rejected. There was a clean bounce off the 50% Fibs at 1.1683 on September 30. And today there was a clear rejection of the 50 Exponential Moving Average. This goes to show that currently, EUR/USD is in a consolidation phase between 1.1683 support and 1.1755 resistance.
But taking into consideration a very precise rejection of the Fibonacci support and the 50 EMA, the probability is now slightly in favor of the uptrend, or an extended upside correction. Which means, that as long as the price remains above 1.1683, EUR/USD could be heading up, to test the 1.1839 resistance level. This resistance is confirmed by 88.6% Fibonacci retracement level applied to the last wave down. Besides, it cleanly corresponds to the 50 EMA breakout point.
Bias: Bullish while above 1.1683
Potential Support Zone: 1.1720-1.1740
Potential Targets: 1.1839
Have a profitable trading!