EUR/USD broke above 1.1625 resistance and extended its bounce from 1.1554 to as high as 1.1654. A further rise to test 1.1690 resistance is possible. As long as this level holds, the price action in the trading range between 1.1554 and 1.1690 could be treated as consolidation of the downtrend from 1.1879 and another fall towards 1.1400 could be expected after the consolidation.
Support levels are at 1.1625 and 1.1554. Below these levels could signal resumption of the downtrend. On the upside, a breakout of 1.1690 resistance will indicate that lengthier consolidation for the longer term downtrend from 1.2092 (Sep 8 high) is underway, then further rise towards the falling trend line on the 4-hour chart could be seen.
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