EUR/USD builds base for retracement
EUR/USD is staging a bit of a fightback, with a rounded base bottom formed. This comes off the back of a substantial sell-off, which was always likely to see some sort of countertrend rally soon enough.
Price has rallied into the $1.0911 resistance level (June low), which will be crucial for the next move. An hourly close above there would provide us with a deeper retracement, where Fibonacci resistance levels at $1.0945, $1.0968 and $1.0995 come into play.
We would need to see an hourly close above $1.1040 to provide a clue that we are in fact retracing the wider move from $1.1275. Conversely, a break back below $1.0874 would signal the sell-off could be back on the cards.