Chart of the Day - EURUSD
EURUSD has found support at the 61.8% Fibonacci level after falling from a bearish double top formation.
EURUSD had tracked a several month downtrend since July, before breaking above trend resistance on 11 October. The bulls rallied to 1.1180 but were pulled back to 1.1072, which became the neckline of the double top formation.
The backdrop here is renewed demand for the greenback due to better US data and a hopeful trade outlook. On the other side of the currency cross, we have eurozone data points failing to inspire.
Buying support has been retested at the 61.8% fib retracement and we have a modestly upside bias in the short-term here. If price action were to push below that 61.8 retracement, we’d expect a retest of buying support at the 1 October low.
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