Correction may have further to run
The rally in EURUSD has stalled over the last few sessions but the bounceback may not be quite so short-lived.
After breaking below the 200/233 dayband in mid-June, the pair had broken into territory, potentially opening up a much broader move to the downside in the months that followed.
After falling back to 1.1754, a corrective move started and while that’s stalled, there may be more to run. The stall came around the 200/233band on the 4-hour chart and it’s since consolidated around that area.
A break above here could see focus turn to the cluster of daily moving averages (55, 89, 200, 233) which fall around 1.20 and the 50 fib level (May highs to July lows).
We may see some resistance around 1.1950 initially (38.2 fib level) but the big one is 1.20, should it get that far.
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