EURUSD remained above the key 1.12 level for a second trading day after dipping below it last Thursday for the first time since late-March. The lower Bollinger Band at 1.1179 lent support and helped prices bounce.
The 1.12 level is now acting as an immediate support level. It is also the 38.2% Fibonacci level of the retracement of the upleg from 1.0520 to 1.1615. Below this level, the 50% Fibonacci lies at 1.1067. A drop below this would shift the bias to a more bearish one. The pair has been in an uptrend since early December when prices bounced from 1.0520 and rose to 1.1615 in early May.
However, RSI is below 50 in bearish territory and suggests risk of further downside momentum. In order to maintain the uptrend, prices would need to rise above 1.13, which is a key barrier to the upside and clear the 23.6% Fibonacci level at 1.1357 (which is also the 20-day moving average).
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