EUR/USD Isn’t Ready To Reverse
The pair is confined inside of consolidation under 1.1295. Trading character is neutral. If the whole 1.1109 support stands, EUR/USD won’t be able to reverse.
Choppy breach of 1.1298 key resistance will mark a clear bullish sentiment and head towards 1.1615 resistance. Breach of 1.1109 support will confirm formation of a near term top and rejection from 1.1298. If that happens, trading will turn up on the downside towards 1.0838 support.
There are some signs of medium term reversal over 55 week EMA. Bullish convergence is present in weekly MACD. 1.1298 key resistance will now be in the spotlight. Rejection from this area will indicate medium term bearishness and enlarge the entire downtrend from the maximum of 1.6039. Strong breach of 1.1298 will point out reversal. If that happens, another rally would occur on the way to 1.2042 support turned resistance.
More prospectively, the downtrend from 1.6039 might have concluded. Long term bottoming at 1.0339 is possible. Choppy breach of 1.1298 will cause an increase for 1.2042. If that happens, further rally should be seen towards 38.2% retracement of 1.6039 to 1.0339 at 1.2516.