EUR/USD: Setbacks have stalled for now ahead of 1.3400 (61.8% fib retrace of the 2008-2009 low-highs), and although the overall structure remains bearish, the market looks as though it may be attempting to carve out a short-term base. Thursday’s bullish doji-like close, followed by Friday’s break back above Thursday’s high, confirms short-term basing prospects and likely opens the door for some upside over the coming days back towards the 1.3800-1.3900 area, before proper consideration can be given for a bearish resumption. A break back below 1.3450 will now be required to negate additional recovery prospects and expose a more immediate downside extension to next key downside support by psychological barriers at 1.3000.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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