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EUR/USD weakens from 61.8% retracement
EUR/USD weakened throughout much of yesterday, following a rally into the 61.8% retracement earlier in the week. There is a strong chance that we are seeing a retracement, set within the wider downtrend.
However, with flatlining lows coming around the crucial historical $1.1554 support level, there is also a possibility that we will form a base here, with a rally through $1.1852 pointing towards a more bullish phase coming into play. As such, there is an argument for both sides, which highlights the importance of obtaining a strong risk-to-reward, or else waiting it out. A rally into the 76.4% retracement looks attractive for shorts, while the option to wait it out would mean watching for a break above $1.1837, or below $1.1508 to dictate the directional bias.
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