EURUSD: Recovering But Vulnerable Medium Term!
The pair may have halted its weakness to move higher the past few days. Unless we see a follow through higher above 1.0606 on a daily closing basis, the risk of returning to the 1.0569 level is possible, bears may come in here and turn EURUSD higher, but if this fails to occur, expect further decline towards the 1.0480 levels where a cut will turn attention to the 1.0380 levels.
On the upside, sustained breakout – daily closing – above the 1.0606 levels will turn the focus on the 1.0700 levels, with a break above here aiming main resistance at the 1.0768 levels where fall resumption is very likely.
According to 4-hour timeframe, the pair is bullish above 1.0598 levels and further upside could be seen to the 1.0653 levels, where a reversal of roles is likely around here, however; above the 1.0653 levels will set the stage for a run at the 1.0700 levels. A breakthrough here will pave the way for a push towards the 1.0768 levels (main) where a strong rejection is suggested…
On the downside, below 1.0598 may expose the 1.0569 levels, If seen, expect the pair to weaken further towards the 1.0515 levels.A turn below here will shift attention to the 1.0480 levels.
- The pair closed at 1.0603 yesterday, a daily closing above that level will pave the way to 1.0700 levels ahead of 1.0768 levels while a failure to break and hold above the 1.0606 levels on a daily closing basis could mean a return to the 1.0569 levels.
- On the 4-hour timeframe: the pair remains biased to the upside above 1.0598 levels in the short term on correction.
- With a lack of important news today, the pair is likely to continue recovery…