- EUR/USD is chipping away at a ley Fibonacci level of 1.10967.
- The hourly chart inverse head-and-shoulders breakout has opened the doors for 1.10.
EUR/USD is trading very close to 1.0967 (38.2% Fib retracement of 1.1110/1.0879), having charted a bullish reversal pattern on the hourly chart on Wednesday.
The pair jumped well above 1.0935 in the sixty minutes to 14:00 GMT on Wednesday, confirming an inverse head-and-shoulders breakout on the hourly chart.
An inverse head-and-shoulders marks a transition from bearish lower highs, lower lows to bullish higher lows, higher highs and is considered a bullish reversal setup.
The breakout opened the doors for a rise to 1.10 (target as per the measured move method).
The daily moving average convergence divergence histogram is producing shallow bars below the zero line, a sign of weakening bearish pressures.
Hence, 1.10 could come into play in the next 24 hours. The bullish case would weaken if the pair faces strong rejection at the key Fib level of 1.0967 and falls back below 1.0935.
Hourly chart
Trend: Bullish
Technical levels
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