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EUR/USD rallies into key resistance area
EUR/USD has moved into more of a consolidation phase over the past 24 hours, following a sharp deterioration on Wednesday. The rally we have seen since yesterday’s low of $1.1180 has brought price back to the key resistance area around $1.1230 where the reaction to this level is likely to determine the state of play for the day.
As such, a closed hourly candle above $1.1230 would look for a deeper retracement of the Wednesday sell-off, with the 61.8% ($1.1250) and 76.4% ($1.1266) Fibonacci retracements representing particularly interesting resistance levels.
However, until that happens, it makes sense to remain bearish for as long as price remains below $1.1230. Key support levels of note are $1.1193 and $1.1180.