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Will EUR/USD continue its ascent?
EUR/USD has rallied into the 76.4% retracement of the sell-off from $1.0874, with the pair turning lower overnight. Given the long-term downtrend for the pair, there is a good chance we could be due a reversal lower, yet it becomes more difficult to gauge as we have no major swing lows within close proximity.
What we do have is a potential intraday topping pattern, with a break below $1.0706 marking a likely source of further short-term downside. From a wider perspective, a rally from here would need to take out $1.0874 to provide a bullish outlook for the medium term. Until that happens, the wider downtrend could kick in once more.
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