FX.co ★ EURUSD could test 1.1000 area before long term up

EUR is weak over the last couple of years. However, with the recent price action the pair formed a double bottom around 1.05 area that seems to be a stable ground. Recently, the pair started a correctional upward move and tested the downtrend trendline, that as of yet has been rejected.

However the 38.2% Fibonacci retracement level, applied on a high made back on December 16 and a low made on March 13, has been broken and at the same time 50% Fibonacci level has not been tested. In overall, it could be a confirmation that EUR will be rising in the long term. An extended long-term correction up can take place. But, before the correction begins with a Head and Shoulders reversal pattern, the right shoulder should be forming now. It looks reasonable for EUR/USD to test a psychological level at 1.1000 (+/-) where 23.6 Fibonacci level is, followed by a long-term rise.

Consider selling EURUSD near R1 (1.1266) targeting S1 area (near 1.1000). This also could also be a good area to start looking for a long term buying opportunities. The only scenario where EUR would start rising earlier is the break above R2 (1.1517) that is a massive resistance, which bears should't given up easily.

Support: 1.1025, 1.0957, 1.0461

Resistance: 1.1267, 1.1763