07.08.201918:10 Forex Analysis & Reviews: EURUSD recaptures key 1.12 resistance area and is eyeing 1.13

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EURUSD has broken out of the bearish short-term channel and after a short-term back test of the channel break out area, we see price remaining above 1.12 which is a bullish sign.

Blue lines - short-term bullish channel (broken)

Green rectangle - short-term target

Black line - upper wedge boundary

Red line - lower wedge boundary

Red rectangle- pivot area

EURUSD has recaptured 1.12 and is trying to break above recent highs at 1.1250. Resistance is at 1.1270 where we find the 61.8% Fibonacci retracement of the recent decline. Breaking above it will surely push price towards the green rectangle area and the black downward sloping trend line around 1.13. The bounce from 1.10 area is progressing as expected. It remains to be seen now if we see a larger break out above the long-term downward sloping wedge pattern or another rejection around the upper wedge boundary and a new lower low.

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