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.

Omkar Godbole FXStreet Contributor

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

EUR/USD

Overview
Today last price	1.1746
Today Daily Change	0.0003
Today Daily Change %	0.03
Today daily open	1.1743

Trends
Daily SMA20	1.1784
Daily SMA50	1.1794
Daily SMA100	1.1497
Daily SMA200	1.1243

Levels
Previous Daily High	1.1746
Previous Daily Low	1.1662
Previous Weekly High	1.1872
Previous Weekly Low	1.1612
Previous Monthly High	1.1966
Previous Monthly Low	1.1696
Daily Fibonacci 38.2%	1.1714
Daily Fibonacci 61.8%	1.1694
Daily Pivot Point S1	1.1688
Daily Pivot Point S2	1.1633
Daily Pivot Point S3	1.1604
Daily Pivot Point R1	1.1772
Daily Pivot Point R2	1.18
Daily Pivot Point R3	1.1855

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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