After staying put near the support level of 1.1540, the EURUSD currency pair was seen finally making a strong rebound on Friday.
This article is originally referred from Orbex Technical Analysis.
The gains coincided with the news about EU officials reaching an agreement on the Euoprean migration crisis.
The issue was a strong one that threatened to not only split the EU countries but also posed serious risks to the German government led by Angela Merkel.
Following the news about a breakthrough in talks early on Friday morning, the common currency posted strong gains on the day.
In the near term, we expect to see the gains potentially pushing the currency pair to the first resistance level of 1.1730. A retest of this resistance level could push the currency pair to trade within the range of 1.1730 – 1.1540.
However, the upside momentum is eventually likely to prevail as the EURUSD is expected to breakout above the resistance level.
A convincing break above 1.1730 could keep the currency pair to post strong gains.
This could eventually see a strong counter trend rally that could eventually send the currency pair back to the 1.2200 level where a major resistance level is pending a retest.
To the downside, if price action remains in the range mentioned, a break down below 1.1540 could trigger further declines in the near term.
This could potentially signal further weakness in the currency pair and could send the euro down to test the 1.1500 level.
Original Source: Orbex Technical Analysis