EUR/USD: Upward momentum needs to extend above 1.2840

by Admin

The EUR/USD has been on recovery mode this European session, with markets closed on holidays and little volume around. Over the Asian session, the pair tested 1.2770 as Chinese Manufacturing PMI readings missed expectations and barely hold above the 50.00 mark, although quickly recovered the 1.2800 level. While the 4 hours chart presents a slightly positive tone, as indicators head north above their midlines and price stands above 20 SMA, the pair needs at least to settle above the 1.2840 level to be able to extend its gains in the short term. Still, sellers are expected to surge in the 1.2880/1.2910 price zone, if reached.

On the other hand, a return to the daily low should anticipate another round of selling, looking in the short term, for a test of the 1.2720/30 strong static support zone.

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