EURUSD rallied above 1.19 during the Friday session. However, bulls face a monstrous resistance above the multiyear high.
The long-term bearish trendline from the 1.60 top in 2008 started clouding the medium-term outlook.
Only a trendline break will increase chances to reach the 38.2% Fibonacci at 1.25. Without a valid breakout, we expect the pair to decline. Furthermore, we do so despite indicators offering no significant signs of a bearish signal.
On the other hand, we do see some bias appearing on the MACD histogram. To end the session with a false break, this might be what is needed.
The medium-term support lays at the 23.6% Fibonacci at 1.1670.
In the shorter-term, on an intraday basis, the upper regression was taken out. A slide back below the trendline resistance could provide a signal for more weakness.
Further down, the next support lays at the median regression of the medium-term ascending channel.
A move to the 38.2% Fibonacci of the 1.0720-1.1910 leg, near 1.1459 could follow. The said level comes in confluence with the median regression of the sort-term ascending channel. However, we require a break of the 23.6% Fibonacci first.
Any attempt to break higher will only be validated if the weekly or the monthly candlestick close above the trendline resistance.