EUR/USD Price Analysis: Recovery rally gathers pace
|- EUR/USD printed its biggest single-day gain in over a month on Tuesday.
- The daily chart now favors a continued rally to former support-turned-hurdle at 1.1785.
While EUR/USD's recovery rally is gathering pace, the pair remains on track to post its first monthly loss since May.
The pair jumped by 0.67% on Tuesday, its biggest single-day gain since Aug. 28. More importantly, it formed a green marubozu candle, as buyers remained in control from day's open to close.
The marubozu indicates that bullish sentiment is quite strong. Also, it confirmed the reversal higher signaled by Monday's bullish inside day candlestick pattern.
As such, EUR/USD could test the former support-turned-resistance of the head-and-shoulders neckline at 1.1785.
At press time, EUR/USD is trading at 1.1747. Even if the pair rallies to 1.1785 as suggested by technical charts, still it would end the month with at least a 1% loss. Tuesday's low of 1.16608 is the level to beat for the selles.
Daily chart
Trend: Bullish
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.