It’s been a slow crawl back from a six-week low in EUR/USD but the decline and turnaround is a positive signal for the pair. Fundamentally, a bounce on worries the ECB doesn’t cut rates makes sense.
EURUSD daily
Today you have false breaks of the 55-day moving average and of the October lows. Buyers came in at the support line of the trend since September. Moreover, conditions were oversold after six consecutive days of declines.
I like euro longs here, expecting a larger bounce ahead of the ECB.
The orderboard shows offers at 1.3540 with more at 1.3565. Bids are at the lows of the day and 1.3440.