EUR/USD Classical 02.02
EUR/USD:The bearish reversal day from last Friday has now been completely negated with the market racing back above 1.3760. While we would not get overly bullish at current levels, the break and close back above 1.3760 on Tuesday could very well open a fresh upside extension towards 1.4000 (78.6% fib retrace off of the Nov-Jan move comes in by 1.3980). However, inability to establish above 1.3800 on Wednesday would suggest that price action is somewhat exhausted and could set up a short-term topping formation. As such, the preferred strategy is to stand aside for now until a clearer signal presents.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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