FX.co ★ Technical analysis of EURUSD for June 5, 2019

EURUSD is challenging the important horizontal resistance at 1.1260. Having broken out and above the medium-term bearish channel it was in since last December, EURUSD has the potential for a new upward move that will bring price even above 1.2550. So what is the risk for bulls expecting a new long-term upward move?Only 160 pips for a potential gain of 10000 or more.

Blue rectangle - resistance

Green rectangle- support

EURUSD is challenging the 1.1260 resistance. Worst case scenario I see for bulls is a pull back to the red channel and a back test of the upper boundary and then a bounce. Support can also be found at the green rectangle area at 1.12-1.1215. However it is not necessary to expect a pull back now. EURUSD is in bullish trend has most probably made an important long-term low at 1.11 where we also find the 61.8% Fibonacci retracement of the 1.03 to 1.255 move. A reversal from this level could signal the start of a new upward move starting that could eventually push price above 1.2550.