EUR/USD Price Analysis: Bulls are taking over through key daily resistance

EUR/USD bulls have moved in and have begun a mitigation process.
The price imbalance between recent highs and towards 1.10 is compelling.

Ross J Burland FXStreet

The US dollar is under pressure and the euro has caught a bid on a combination of the market's pivot towards the European Central Bank and refreshed hawkish sentiment. This leaves the prospects for a longer correction of the weekly bearish impulse for the foreseeable future.

EUR/USD weekly chart

The bulls are already penetrating the 38.2% Fibonacci and on the way to 1.07 the figure. A move towards the 50% and 61.8% ratios could be on the cards for the foreseeable future.

Meanwhile, the US dollar on the charts, as per the DXY index, has fallen below support at the start of this week:

The price is moving into a void of support on the daily chart which could lead to a move lower to test the prior highs near 101.00.

As for the euro, this points to higher highs for the days ahead:

The price imbalance on the daily chart leaves the aforementioned weekly ratios on the Fibonacci scale exposed towards 1.0770 and 1.0936.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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