EUR/USD rallied from 1.0462 to 1.1040 last week. The main bullish breakout move followed the FOMC statement. After that, there was a sharp pullback, but that held above 1.06 and maintained a bullish outlook. Let’s follow up on the price action since this breakout and confirmation.
The 4H chart shows that price has continued to threaten the 1.1040 resistance. During the 3/24 session, there was a bearish engulfing candle. However, this candle failed to extend the retreat and price held above 1.09. This suggests that the bulls in this market is in control in the short-term.
Also note the 200-period SMA just above 1.1040. A break above 1.1050 is likely to open up further bullish correction. When we look at the daily chart, we can see some room to rally until a key pivot around 1.1270. If price stalls here, and the daily RSI also stalls around 60, be ready for a bearish attempt at least to test the 1.09 level that acted as support in the previous couple of sessions.
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