As always, a break above resistance will require confirmation to argue that the pair may reverse its downtrend which began in mid-April. Immediately above resistance though is a range where the pair was unable to push above in early June. The outer boundary of this area is the June 14th high at 1.1852. Getting above that opens the door for a lasting reversal. Meanwhile, a break below support exposes the 50% midpoint of the extension at 1.1400.
EUR/USD Daily Forecast - 5 July
Looking at a daily chart, EUR/USD continues consolidating in a familiar range since last month’s ECB monetary policy announcement. It is confined by resistance which is around 1.1718 (November/December 2017 lows) and support at 1.1507 which is also the 38.2% Fibonacci extension. However, downside momentum is ebbing as indicated by RSI which shows positive divergence. This warns that there may be a push higher ahead if not more consolidation.
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