EURUSD jumped sharply on Monday to test the 50% Fibonacci level of the May downleg from 1.1615 to 1.1097, which is at 1.1354. The market rebounded from a low of 1.1130 touched last week to rise above the short-term descending trend-line.
With upside momentum gaining, (RSI has popped above 50), there is scope for prices to rise further towards the 61.8% Fibonacci at 1.1417. A successful break above this level could see the pair retest the May high of 1.1615 and see a resumption of the long term uptrend that started from 1.0824 back in March to the May high of 1.1615.
Alternatively, if prices fail to break resistance at the 50% Fibonacci and fall back down from current levels, this could quickly drag the prices towards the key psychological level of 1.1300. Below this, the 23% Fibonacci level at 1.1215 acts as important support, which if broken, could see a resumption of the short term down-trend from 1.1615.
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