The EURUSD has enjoyed four positive weeks in a row since catching a bid at 1.0500. The pair continued its slow and steady rally last week with a Tuesday bounce from the 1.0712 support area.
However, sellers have yet to achieve a daily close above the 1.0825 handle. This is a level that dates all the way back to 1999, so a break here isn’t likely to come easy.
The 1.0825 level is also the 38.2% Fibonacci retracement when measuring from the 2016 high at 1.1615 to the current 2017 low at 1.0340.
As long as the pair trades below this area on a daily closing basis, my bias remains weighted to the downside. With that said, only a proper sell signal from resistance would be enough to get me off the sideline.
For now, the jury is still out on whether the EURUSD has carved out a four-month inverse head and shoulders pattern. For that to become a probability rather than a possibility, I’ll need to see a daily close above 1.0825.
However, sellers have yet to achieve a daily close above the 1.0825 handle. This is a level that dates all the way back to 1999, so a break here isn’t likely to come easy.
The 1.0825 level is also the 38.2% Fibonacci retracement when measuring from the 2016 high at 1.1615 to the current 2017 low at 1.0340.
As long as the pair trades below this area on a daily closing basis, my bias remains weighted to the downside. With that said, only a proper sell signal from resistance would be enough to get me off the sideline.
For now, the jury is still out on whether the EURUSD has carved out a four-month inverse head and shoulders pattern. For that to become a probability rather than a possibility, I’ll need to see a daily close above 1.0825.
