EUR/USD pauses at crucial resistance level
EUR/USD has finally paused for a breather following a week of substantial gains in the pair. The $1.1123 mark is a crucial resistance level considering that it previously underpinned a descending triangle pattern for over two-months.
As such, the retest of this area as new found resistance means we need to break through to provide a clue that the rally is set to continue. Until then, there is a chance we could start to see the pair turnaround from here.
The daily chart shows that we have posted a spinning top candle yesterday, with the 50-day simple moving average (SMA) also providing resistance at this region. Thus, watch out for the response to this level as a sign of where the next move is going to come.