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EUR/USD – rally extension towards $1.12?
EUR/USD retracement ran for most of Thursday’s session, but once again buyers came in to defend the $1.1080 level, as they did a day earlier.
The bounce off this level continues to suggest an extension of the rally, towards $1.12 and higher, but it needs to clear the $1.1180 high from Tuesday/Wednesday, to avoid creating a lower high. A drop through $1.1080 would be a bearish development, but the loss of $1.10 would be the real bearish catalyst.