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EUR/USD rallies out of downtrend
Yesterday’s FOMC statement sent EUR/USD flying, with the pair gaining heavily overnight. Crucially, we have seen price break into the 76.4% retracement of a wider move and as such, there is a strong chance we will see the pair begin to weaken from here.
Ultimately, it is a case of trying to pick through the different timeframe moves and while key resistance levels have been broken on the intraday markets, the key swing highs of $1.1186 and $1.1165 remain in a pattern of lower highs. As such, a bearish view is in place unless we see a break through $1.1165.