EURUSD needs a confirmed permission from yields to inch higher
The EURUSD resumed its drama last week with strong bullish movements that have been turned into weakness ahead of closing, influenced by the upbeat NFP figures.
From a technical perspective, we see the breakout below the yields’ uptrend line (set from early September 2013) as a new opportunity to long the EURUSD pair.
Nevertheless, this long catch in EURUSD needs another confirmation with yields coming below the uptrend line to affirm the major breakout below the aforementioned uptrend line.
In other words, we will stand aside until yields breaches through horizontal support to long EURO and we may long also if EURUSD overtakes the minor resistance of 1.1380-previous week’s low- as that will weaken 1.1500 psychological this time.
Of note, clearing 1.1500 will expose 1.1680 as a soft objective for bulls, while 1.18 -1.20 could be the main objective zone.