EURUSD Approaches Key Resistance After Strong BounceThe 1.1050–1.11 support zone held EURUSD almost like a textbook example. Still, it is too early to say the retest has failed and that the main direction is now definitively upward. You can check our earlier post here:
In the short term, the bounce and breakout above 1.12 were strong. However, bulls should remain cautious as the main resistance is now within reach. The 1.1275–1.1295 zone is the key short-term resistance, in our view. This area includes a former key horizontal support level, the short-term downtrend line, and it also marks the midpoint of the April 21 to May 13 retreat.
Unless this zone is broken, EURUSD could start to lose momentum. The 1.12 level may now act as a pivot between the 1.1150–1.12 support area and the 1.1275–1.1295 resistance range.
