EUR/USD bulls starting to hit some selling pressure as we approach 2015 high at 1.1701/11. (Not a surprise of course!). **This should be far more challenging than the 2016 high.** We are in one big 2.5 year sideways trend and this is the upper limit in severely overbought conditions. In fact the 1.1710/1.1740 area encompasses important longer term Fibonacci resistance. If you think the 7 month recovery is over done (as I do) this is the area to try shorts with stops above the 500 week moving average at 1.1800.
A minor sell signal now, we have been waiting for this for a few days. Minor support at 1.1650/40 was tested but we over ran by 16 pips. Today we have stronger 7 week trend line support at 1.1599/95 which is likely to hold the downside on the first test today. Bulls will not just roll over and let bears take control without a battle. Try longs with stops below 1.1565. A break lower however is a sell signal targeting minor support at 1.1550/45 and strong support at 1.1490/85 for a buying opportunity.