EUR/USD has been trading above 1.14 at the start of the week and so far the bullish follow through we were expecting has been confirmed. However price is now challenging important short-term Fibonacci resistance that is crucial for the continuation of this upward move that started last week from below 1.13.

EUR/USD has managed to reach just below the major short-term resistance at the 61.8% Fibonacci retracement level. This is an important resistance. A rejection and reversal from this area will imply a lower high is in place and we could start another strong selling leg lower towards 1.12. If bulls manage to recapture and hold above the 61.8% Fibonacci retracement level then the chances for a move above 1.1570 will increase.