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EUR/USD reversal developing
EUR/USD has been showing possible bullish reversal signals over recent days, with the pair breaking through the key $1.1050 resistance level. These reversal signs are coming from the Wednesday sell-off which hit a crucial cluster of support, with two trendlines coupled with a 61.8% Fibonacci retracement.
Given the existence of that level, coupled with the gradual creation of new higher highs and higher lows, it seems likely the current move lower is unlikely to last beyond $1.1015. Thus a bullish view is in play, for another move higher with initial resistance levels at $1.1059, $1.1068 and $1.1086.
Alternately, an hourly close below $1.1015 would provide a sign of weakness, where any further downside would look towards $1.0990 and $1.0967 as the next support levels.