EURUSD - Recovery

EURUSD (1H) - short term bullish bias

The euro spent the previous day consolidating after the recent sell-off. The short side has struggled to push the pair lower. Instead, a bullish RSI divergence showed that the downside momentum has lost steam, a heads up for sellers that a reversal could be underway. The price rallied above the bearish trend line and built positions for a breakout. The latest impulse above the psychological level of 1.1100 is the confirmation that buyers have taken control of the price action. We could expect a rally towards 1.1140.

Key support: 1.1080
Key resistance: 1.1140