EUR/USD in a bullish mood but caution still needed.
EUR/USD is pushing hard to enter the 1.13
Should the pair overcome the 23.6% Fibonacci of 1.1326 of the down leg from 1.1814 to 1.1175, the focus will shift straight up to the upper surface of the Ichimoku cloud, near 1.1370. Clearing the cloud, the bulls would aim for the 200-day SMA currently at 1.1440 but the 38.2% Fibonacci of 1.1420 could prove a hurdle as in previous sessions.
On the downside, support could immediately appear near 1.1268 which if broken could send the price down to the 1.1200-1.1175 restrictive zone. Beneath the latter, the sell-off could pick up speed towards 1.1060, a frequently tested level in 2016.
In the medium-term picture, EUR/USD is in a downtrend since early January and only a decisive close above the 200-day SMA could increase hopes for a bull market.
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