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  • EUR/USD”s recovery from September lows has paused at a key Fibonacci hurdle. 
  • A breakout will likely accelerate the rally toward 1.20.

The EUR/USD bulls are having a tough time breaching a key Fibonacci hurdle for the fourth straight trading day. 

The pair is currently trading largely unchanged on the day near 1.1850, having faced rejection at 1.1859 an hour ago. 

That level marks the 61.8% Fibonacci retracement of the sell-off from 1.2011 to 1.1612. The Fibonacci hurdle has been capping upside since Wednesday. 

The daily chart relative strength index and the MACD histogram are biased bullish and favor a continuation of the rally from September’s low of 1.1612.

As such, the pair could find acceptance above the Fibonacci level, exposing the psychological resistance of 1.20. On the downside, 1.1787 – the low of Friday’s long-tailed candle – is the level to beat for the bears. 

Daily chart

Trend: Bullish

Technical levels