The Euro advanced on Monday and managed to rise further beyond the 1.14 level, with the EURUSD pair consolidating on Tuesday and losing 0.15 percent during the London session, as it was trading at around 1.1435.
Bulls pushed the pair above the short-term bearish trend line and also beyond the previous lows, which are both converged at the 1.14 – 1.1430 zone. This has effectively canceled the immediate bearish bias. As long as the pair stays above 1.14, the short-term outlook seems bullish. The next target for bulls could be at the 1.15 handle, where the pair failed previously in November and then again at the 100-day moving average near 1.1560.
If the pair fails to hold the 1.14 – 1.1430 zone, the bullish outlook could be negated and the Euro might return back to 1.13, which is the key support for the near future.
The RSI indicator is supporting the bullish outlook as it rose to new November highs, which could be positive for the EURUSD pair.
As long as the Dollar index is testing the important bullish trend line - it looks like this one may not be held - the greenback might lose some ground over the next few days.
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