- The EUR / USD tested and rebounded from the 1.2030 / 20 area.
- The recovery faces the next hurdle near 1.2100.
EUR / USD bounced off Wednesday’s lows around 1.2020, rebounding to the 1.2070 / 75 band for now.
The pair is now flirting with a Fibonacci level in the 1.2060 / 65 band. A break above this area could lead to a likely visit to the key 1.2100 level in the very near term.
Should the uptrend resume, recent highs around 1.2170 appear as an intermediate barrier. This area is also reinforced by another Fibonacci retracement. Higher up are the weekly highs near 1.2190 (Jan 22 high). The selling pressure should ease above the latter, opening the door to a likely visit to this year’s highs at the 1.2350 area.
On the bigger picture, the constructive stance of the EUR / USD will remain unchanged while it is above the critical 200-day SMA, today at 1.1744.
Looking at the monthly chart, the solid break from the 2008-2020 trend line is a big bullish event and should support the continuation of the current long-term trend.
EUR / USD day chart
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