- EUR / USD bottomed out at the 1.2080 / 75 band and rebounded.
- The pair is under pressure after having reached overbought levels.
EUR / USD extended the downward correction to the 1.2080 area at the beginning of the week amid profit taking and a slight rally in the dollar.
The positive stance of EUR / USD, however, remains unchanged and would allow the uptrend to continue once the ongoing correction ends. That said, a likely move to 1.2200 remains well on the table for now.
If it exceeds 1.2200, it should shift focus to 1.2413 (April 2018 high) ahead of 1.2476 (March 2018 high). Higher up, the most relevant barrier emerges at the 2018 high around 1.2550.
Looking at the bigger picture, additional gains are likely in the EUR / USD as long as they are above the critical 200-day SMA, today at 1.1437. The 200-week average near 1.1440 also reinforces this view.
EUR / USD day chart
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