The euro retreated as short-term traders took profit. After a six-week-long consolidation, the euro soared above the supply area at 1.1380 and forced the bears to cover in mass.
As the dust settles, a bearish RSI divergence showed a lack of follow-up momentum. The current pullback is heading towards the origin of the breakout near 1.1355 which coincides with the 61.8% Fibonacci retracement level.
A rebound and then a close above 1.1480 would lead to a bullish reversal towards the daily resistance at 1.1600.
