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EUR/USD Classical 01.20

EURUSD_CLassical_body_eur.png, EUR/USD Classical 01.20

EUR/USD:Although the market has rallied quite impressively out from the recent multi-week lows set by 1.2875, we continue to classify the bounce as corrective, with any additional rallies expected to be well capped by the 1.3500 range highs on a daily close basis ahead of some fresh weakness. Ultimately, only a close back above 1.3500 would give reason for concern and delay outlook. A break and close back below 1.3365 will confirm bias and accelerate declines.

Written by Joel Kruger, Technical Currency Strategist for DailyFX.com

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