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EUR/USD in a Bullish Breakout Attempt

The EUR/USD feel last week but found support at 1.3512 and consolidated with resistance at 1.3575. This week, traders tested and respected the 1.3512 support, and pushed above the 1.3575 resistance, trying to breakout and form a price bottom.

(eurusd 1h chart 6/16)

There is still strong prevailing bearish trend since the failure to push above 1.40 in May. Notice the market reacting to the 200-hour SMA. If we get a pullback, the 1.3550 area will be important. It is the central pivot of this recent consolidation.

A hold above 1.3550 shows respect to the price bottom development, and thus opens up the 1.36 and 1.3670-76 highs from the previous couple of weeks. If the RSI can hold above 40, that would also be a sign of bullish development.

If EUR/USD falls below 1.3540 however, the focus would remain toward the 1.3512 low, 1.35 handle, and the 1.3476 low on the year.