The EURUSD is testing a key resistance area at 1.1800.
I mentioned this area in last weekend’s forecast video.
As you can see, the 1.1800 area involves a trend line from the recent consolidation lows.
It’s the area buyers need to break to reestablish the bullish momentum.
It’s unclear whether we’ll see buyers break 1.1800 on a daily closing basis or get another rotation lower.
However, I’d rather see another pullback first.
A close above 1.1800 may turn out to be a false break.
Regardless of whether the EURUSD turns bullish again or we get another pullback, I’m long term bullish.
That bullish outlook will remain intact as long as 1.1450 holds as support.
Notice how 1.1450 is near the trend line from the 2008 high.
So, any pullback from EURUSD may be short-lived.
I’ll be interested in buying the EURUSD following a pullback to that support region between 1.1450 and 1.1500.
Until then, we could see additional weakness from the euro.