EUR/USD: Ready to climb

The EUR/USD pair on Friday finally managed to break through previous strong support now turned resistance near the 1.10 mark. The technical set-up now seems tilted in favour of bulls and supports prospects for further gains, according to Haresh Menghani from FXStreet.

Key quotes

“The 1.10 mark coincides with 50% Fibo. and should now act as a key pivotal point for short-term traders. Meanwhile, the fact that the pair has already found acceptance above 50-day SMA might have already shifted the near-term bias in of bullish traders.”

“Some follow-through buying above the 61.8% Fibonacci level of the 1.1239-1.0778 downfall, around the 1.065-70 region, will reinforce the constructive outlook and set the stage for a move towards reclaiming the 1.1100 round-figure mark.” 

“On the flip side, any meaningful pullback now seems to attract some dip-buying near the 1.10 mark, which if broken might prompt some technical selling.”