EUR/USD retracing from Friday’s sell-off
We are seeing EUR/USD rally after a sharp deterioration on Friday. The likeliness is that we will see the bearish medium-term view come back into play soon enough, yet there is still a strong chance of further gains meanwhile.
Thus, an hourly close above $1.1198 would point towards a push into the $1.1217 region. Given the size of Friday’s downturn, it is unlikely we will retrace enough to get to the 76.4% retracement at $1.1253. As such, we are looking for weakness to come in around the 50% or 61.8% Fibonacci level.