EUR/USD punches higher from deep retracement
EUR/USD punched higher yesterday after a very bullish assessment from Mario Draghi. This brought us back above the key $1.1285 resistance level, thus ending any hopes of the bears given the inability to fall below $1.1110.
Thankfully we hit the 76.4% first, bringing with it a nice risk-to-reward trade. For today, we are heavily extended to the upside. While we could see further upside, it is going to be difficult to carve out a decent trade given the distance to the most recent swing low of $1.1171. As such, watch out for retracements or intraday continuation patterns. A break back below $1.1171 would negate this bullish outlook.