Potential for EUR/USD bullish reversal
Last week saw EUR/USD drift lower, in what looks like a retracement of the early February rally. Friday’s fleeting rally is being sold into now, yet with the crucial $1.1059 resistance (December high) within close proximity, there is a chance we could see the pair start to reverse higher in the near future.
The inability to break through $1.1059 would be key to this and we would need to see a closed hourly candle back above $1.1139 to give some confidence that a bullish turnaround could be in the offing.
As such we are in a wait and see mode, where a closed hourly candle below $1.1059 would point towards a bearish continuation of the move seen this week gone.
Otherwise a move back above $1.1139 would sow the seeds of a bullish resurgence.
Resistance levels of note are $1.1139, $1.1160, $1.1193 and $1.1252. Support levels are $1.1059 and $1.0967.