EURUSD back tests broken trend line

EURUSD has broken the trend line support and pulled back as low as 1.1957. In our previous analysis we noted that it is justified to see a back test at the break out area around 1.20-1.2020.

Red line - previous support now resistance

EURUSD is testing the red trend line from below. A rejection here will lead to a move lower below recent low of 1.1957. Most probable target is the 38% Fibonacci retracement around 1.17. Short-term trend remains bearish as long as price is below 1.21. We consider this bounce as a selling opportunity for a move lower.