EUR/USD rallies out of basing pattern
EUR/USD is rallying through the crucial $1.1230 resistance level this morning, providing us with another higher high on the four-hour chart. This provides us with a good overall perspective to show that the current resurgence looks like a retracement of the referendum downturn.
As such, with price approaching the 76.4% retracement at $1.1305, we are looking for shorts around that area to get back on the long-term downtrend. Clearly, that would mean there is a strong chance of further upside until then. We would need price to break through the $1.1428 resistance to negate that bearish view.