EURUSD briefly plunged last week below the key support at 1.0660, however sellers managed to erase some of the losses during quiet Friday's session. Due to the pullback from the end of last week, a hammer formation appeared on the D1 interval, which, according to the classic assumptions of technical analysis, point to potential resumption of upward movement. In addition, the pair managed to stay above the lower limit of the 1:1 structure, which, according to the Overbalance methodology, provide more fuel for the bulls. If current sentiment prevails EURUSD may move higher in the medium-term. Otherwise, negating yesterday's D1 candle could trigger a deeper correction towards 1.0570 or 1.0470.
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Open account Try demo Download mobile app Download mobile appEURUSD D1 interval. Source: xStation5
Looking at the lower time frame, one can notice that the pair managed to break above the 1.0670 zone and is holding above this level during today's session. As long as price sits above this level, upward move may accelerate towards resistance at 1.0800. Otherwise, a dip below the aforementioned zone could open the way towards Friday's lows at 1.0615.
EURUSD H1 interval. Source: xStation5
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