EUR/USD holders last two weeks either burnt or they are still counting their profits. Announcements of previous weeks from ECB and FED accompanied with hawkish statements from president Draghi and on the other hand Dovish statements from members of the FED lead the pair on a bullish ride of 520 pips from 1.0821 to 1.1341!
Price last few days is consolidating, while Bulls and Bears are in the middle of a fight.
Price is now testing the 1.12 support line which is also a psychological support. A possible break below the 1.12 will most probably give the bears the power they need to test the 200 MA, which is a very crucial level for future price action. If price manage to penetrate and close below the 200 MA then we expect price to retrace to lower levels and why not to test the 1.1058 support level
On the other hand if 1.12 support level or 200MA which also acting as a very important support level manage to hold the price, we might see price testing again the 1.1335 resistance level.