EUR/USD rebounds from key support zone
EUR/USD is breaking higher from the $1.1510 support level yet again, with yesterday’s Bank of England (BoE) meeting helping drive European FX higher.
The break through $1.1644 provides a bullish short-term view, with questions raised over whether we are seeing a retracement or bottom for the pair. Key to this is the fact that we have seen flat-lining bottoms, given the failure to break to a new low yesterday. With the price breaking above $1.1644, it looks likely that we will head higher, with the 61.8% and $1.1727 level being the first zone of resistance. A break through $1.1852 would signal a wider recovery phase for the pair. Until then, there is a chance this will be a retracement within a wider bearish downtrend.