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EUR/USD begins to show signs of strength
EUR/USD has started to turn higher, following a brief foray below the crucial $1.1730 support level. This move below the wider support level means that the pair continues to create lower highs and lows on the longer-term timeframes. As such, we could have a period of upside and still remain within a wider downtrend.
With that in mind, it is notable that the price has broken up above the first swing high of $1.1763, thus negating the recent intraday pattern of lower highs and lows. A bullish view is now in place for a retracement of the wider $1.1868-1.1725 move. A break below $1.1725 would negate this outlook.