The EURUSD tried to break out on Tuesday after carving an inverse head and shoulders pattern in the last few weeks.
You can see where the EURUSD is trying to close above that 1.2160 resistance area but hasn’t yet.
Sellers are still putting up a decent fight at 1.2160.
It’s going to take a daily close above the 1.2160 area to flip it to support.
Until then, expect EURUSD bulls to struggle.
As I mentioned last week, a close above 1.2160 would re-expose the 1.2330 resistance area.
However, the measured objective of the structure below is around 1.2380.
Will EURUSD reach those levels?
It’s unclear as of now.
What I do know is that 1.2160 is acting as resistance so far this week.
I also know that a daily close above that level is what it’ll take to expose higher prices.
Alternatively, a move below the 1.2000 area would negate the idea.
Keep in mind that Fed Chair Jerome Powell speaks on Wednesday at 10 am EST, which could trigger some volatility for the EURUSD.