EUR/USD strength unlikely to last
EUR/USD sold off heavily late last week, following on from an European Central Bank meeting which hinted at possible further action in March. This brought price back down below the crucial $1.0808 support level to create a more bearish scenario for the pair.
This morning is seeing some strength coming back into play for the pair, yet the likeliness is this will be a temporary retracement. So far this morning, we have seen the 23.6% Fibonacci retracement hold as resistance. Should we break above this level, the region between the 38.2% pullback $(1.0853) and the low from last Tuesday ($1.0859) seems a likely source of strong resistance to continue the downtrend.
As such, further upside would be expected with a close back above $1.0825, yet this is not expected to last.