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EUR/USD rally holds as traders eye 1.1621 resistance

A break above 1.1621 would reinforce a view that the prior decline to 1.1323 finished as a three-wave correction.

Reported · Written up by our desk · Major Pairs

EUR/USD’s rebound from 1.1323 continued last week even after a brief setback, with traders keeping an upside bias while price remains below key resistance levels, according to Action Forex.

The weekly outlook calls for focus on the 1.1621 cluster resistance area, identified as a 38.2% retracement from 1.2081 to 1.1323 at 1.1613. A decisive break there would strengthen the case that the fall from 1.2081 has completed as a three-wave correction at 1.1323, opening the door to a further advance toward the 61.8% retracement level at 1.1791.

On the downside, Action Forex said that falling below 1.1513 would turn intraday bias neutral again, before attention shifts to longer-term support tied to the 38.2% retracement of 1.1353 from 1.0176 to 1.2081.

In the longer-term view, the key level is around 1.2000, near a 38.2% retracement of 1.2019 from 1.6039 to 0.9534, where rejection would keep the multi-decade downtrend intact. A decisive break of 1.2000 to 1.2019 would suggest a longer-term bullish reversal, targeting the 61.8% retracement at 1.3554.

Latest closeEUR/USD 1.152 ▼0.3%

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