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  • EUR/USD probes key resistance after confirming a bull reversal on the weekly chart. 
  • A breakout could bring stronger gains toward a long-term average. 

EUR/USD continues to gain ground amid sustained coronavirus-led risk aversion in the equity markets and could end up scaling the all-important 61.8% Fibonacci retracement of the decline from 1.1240 to 1.0778. 

At press time, the pair is pressing against the Fibonacci hurdle at 1.1063, having hit a high of 1.1074 a few minutes ago. 

A close higher would bolster the bullish outlook put forward by the weekly chart bullish hammer reversal pattern. The pair rose by 1.66% last week, forming a big green candle and validating the preceding hammer candle. 

On the higher side, immediate resistance is seen at 1.1098, which is currently housing the 200-day average. The bullish outlook, however, would weaken if the spot finds acceptance under the 4-hour chart support at 1.0951. That would invalidate the higher lows setup. 

The pair may begin to lose ground if the risk sentiment begins to stabilize and the S&P 500 futures turn positive. Currently, the futures are trading 0.80% lower on the day.   

Daily chart

Weekly chart

Trend: Bullish

Technical levels