FX.co ★ Technical analysis of EURUSD for June 4, 2019

EURUSD is breaking higher after making an important low at 1.1115. EURUSD is breaking out of the medium-term bearish channel its been in since December of 2018. EURUSD is challenging important resistance at 1.1260 and this is the final obstacle before confirming major trend reversal.

Blue rectangle -major horizontal resistance

EURUSD is making higher highs and higher lows after a long time. Price is also breaking above the red bearish channel and is challenging the horizontal resistance at 1.1260. In most of our previous posts we noted the importance of the resistance at 1.12-1.1230 and that a break above it could signal a bigger trend reversal. We also noted several times that bullish divergence warning signs were evident in the Daily charts and that EURUSD bears should be very cautious. EURUSD has made an important low at the 61.8% Fibonacci retracement of the entire rise from 1.03 to 1.255. There are many chances a new leg higher starts from these lows.