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EUR/USD rallies into trendline resistance
EUR/USD has continued its decline this week, with the price falling back in the recent weeks. The wider outlook is somewhat mixed, because while the two months have seen the longer-term creation of lower highs and lows, we have recently seen a break through $1.1836 to muddy the picture.
The bullish outlook would truly come back with a break above $1.1879, yet for now it is worthwhile being open-minded on the notion that we could break higher once more. The recent turn lower has seen the price rally into trendline resistance, with the 61.8% also coinciding with that line. We would need to see a break through $1.1808 to negate the recent weakness, and until then there is a good chance of further downside to continue the recent trend.