EUR/USD: A bullish reversal seems to be taking shape, the point on the key thresholds

© O Financista.

By David Wagner

After having declined almost continuously since the beginning of the month of February, the EUR/USD pair posted a strong rebound last Friday, and although the rebound has been called into question in the first part of the day yesterday, it was finally confirmed in the afternoon with a new high of 1.0870, so that a bullish reversal seems to be build in the short term.

Today, the Euro declined again, but not enough to call into question the potential bullish reversal formation.

In fact, one can see that the EUR/USD shows since last Friday, a series of peaks and troughs increasing, which characterizes the upward trend. For this configuration remains, the pair should hold above the support yesterday towards 1.0810-15.

Prior to this, the moving average 200 hours and 100 hours, currently at 1.0825 and 1.0818, respectively, are considered to be in the media’s immediate, and a break under these levels would weaken already the chances of seeing a lasting rebound is install.

If the vendors prevail, and that the pair EUR/USD drops under 1.08, the rebound will be more news, and a test of the low of last week (and lowest 2020) to 1.0777 will be possible, before any new lows each year.

For the rebound that receives an additional confirmation, a quick break above the highs of yesterday at 1.0870 (and, ideally, the psychological threshold of 1.09) shall be required, without which it is a consolidation in a range 1.0810-1.0870 which will become the most likely scenario.

Above 1.09, the area of 1.0950 and then the psychological threshold of major 1.10 will become the next targets upward to aim at.

Finally, it must not be forgotten that the economic calendar is loaded this week could also affect the Euro-Dollar, with this afternoon at 16h, the consumer confidence index US the Conference Board, and then tomorrow with a speech by the president of the ECB, Christine Lagarde at 14: 30 and new home sales US 16.

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