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EUR/USD rally comes into question
EUR/USD has been a big performer this week, rallying towards last week’s highs of $1.0976. However, a sharp selloff overnight is bringing this strength into question.
The crucial level to watch here is $1.0869, where a break below would indicate a likely beginning of the move back down through initial support levels of $1.0859, $1.0834 and $1.0808. An inability to break back through $1.0869 would mean that the uptrend remains intact and thus we could see another bounce in turn.
Therefore look for short-term bullish reversal signals. Resistance levels of $1.0916, $1.0922 and $1.0944 would be the next major levels to the upside.