Technical Analysis

EURUSD Relief Rally Extends to 1.1844


The EURUSD pair has extended its overnight trading gains during today's European session, hitting 1.1844, as the single currency stages a relief rally after the Catalan government opted to enter into further dialogue with the Spanish government.

Sentiment surrounding the EURUSD today is bullish while the pair continues to hold price-action above the key 1.1800 handle. The euro continues to drive higher, as financial markets remain complacent towards political risks in Spain.

The euro has pulled back from its weekly price-high, at 1.1844, and is currently holding price-action above the 1.1800 level, at 1.1820.

Technically, the EURUSD pair is now trading within a bullish inverse head and shoulder pattern on the lower time-frame price-charts, with an upward price projection of 180 pips.

Any technical corrections lower on the EURUSD pair should find support from the 1.1800 and 1.1795 level. Below the 1.1795 level, a deeper pullback towards support at 1.1770 and 1.1740 may take place.

To the upside, key technical resistance is found at the pairs 50-month moving average, at 1.1829 and the recent swing-high, at 1.1844. Once above 1.1844, further resistance is found at 1.1858, 1.1875 and 1.1910.

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