Since the bearish reaction to ECB’s QE announcement, the EUR/USD has been resilient. Let’s take a look at the charts to assess the technical set up.
The EUR/USD rebounded to 1.15 and has been holding above 1.13 even after the strong NFP report on Friday, which gave the USD strength across the board. It did extend lower to start this week, and is now trading between 1.1275 and 1.1350.
A break above 1.1375 would put the EUR/USD above this range and back above the 200-, 100-, and 50-hour SMAs. This would expose the 1.15 high with risk of further bullish correction.
However, if price falls below 1.1275, it could revive the prevailing trend and put pressure on the 1.11 low with risk of extending lower towards the 1.10 handle.
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