EUR/USD Started Strong Recovery But Can It Continue Higher?
|Key Highlights
- EUR/USD started a strong recovery and climbed above 1.1050.
- There was a break above a major bearish trend line at 1.0840 on the 4-hours chart.
EUR/USD Technical Analysis
Looking at the 4-hours chart, the pair gained pace after it cleared the 1.0850 resistance area and a bearish trend line. Besides, the pair surpassed the 1.1065 barrier and the 200 simple moving average (green, 4-hours).
It opened the doors for more gains above the 50% Fib retracement level of the main decline from the 1.1494 high to 1.0635 low.
On the upside, an initial resistance is near the 1.1200 area. The first major resistance is near the 1.1290 level since it is close to the 76.4% Fib retracement level of the main decline from the 1.1494 high to 1.0635 low.
A successful close above 1.1200 and then a follow through above the 1.1300 level could lead EUR/USD towards the 1.1500 resistance area in the coming days.
Conversely, the pair might start a downside correction below the 1.1050 support area. The main supports on the downside are near 200 SMA and the 1.0960 level.
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