FX.co ★ EURUSD back tests broken trend line

EURUSD is trading at 1.2145. Earlier today price broke above the resistance trend line but now we see a back test of the break out area. Holding above 1.2080 gives hopes for an upward extension towards 1.2220-1.2350 as we explained in our previous analysis.

Red rectangle- key support

Blue rectangle -first target

EURUSD is making higher highs and higher lows. Price is in a bullish short-term trend. Breaking above the red resistance trend line is a sign of strength and this gives bulls hope for a move towards the blue rectangle. Staying above the broken resistance trend line increase the chances of a bounce and a move higher. Bulls need to defend the 1.2020 low and by no means let price break below it. This will cancel any chance for an upside move towards 1.22.