EURUSD - Bullish due to 1.2200 rejection; 1.2340 targeted

The rally from last week's important low continued yesterday. Initially selling pressure was resumed but profit taking at similar levels to Friday mean that a minor net improvement was posted. This third consecutive rejection of levels below 1.2200 is supported by positive momentum and although an early correction to overbought intraday signals is considered likely the current EURUSD tone is assessed as positive. In view of this our call is Bullish & Buy a setback to 1.2265. The risk on longs is 1.2236 and the immediate target is 1.2314, the overnight high with a move above that level targeting 1.2340 or even 1.2403, half the net losses from July 6 and that day’s top.

The risk to this call is a move below 1.2236 indicating that buying pressure is weaker than previously assessed targeting 1.2212 then last week's 1.2162 base.