EURUSD correcting lower on Wednesday


Yesterday's huge reversal continued on Wednesday, and the euro was down half a percent against the greenback, trading at around 1.1850.

It looks like the psychological barrier of 1.20 was strong resistance, and many traders took profits here, while other ones opened short positions. 

The major support now seems to be at the short-term uptrend line, which is near 1.1780. As long as the EURUSD pair trades above this level, the medium and long-term outlooks still appear bullish. 

However, if this level is broken to the downside, we could see a quick slide toward 1.17, where August lows are located.

Alternatively, it is likely the greenback will start falling again. In that case, the resistance might be at around 1.1920 and afterward at 1.1970 and 1.20.

Stocks in the US are rising every day, which indicates that sentiment is positive, and that should be negative for the greenback. 
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