This EUR/USD rally is proving to be resilient, and the latest rebound could reach 2020 highs near 1.1500.
In March, EUR/USD support held in the face of great downside pressure and did that while traders were sitting long.
This month, the rally faltered, but bets on a rise had grown significantly and with the pair rising 6% in just 24 days, a pullback was likely and ultimately healthy for the bull trend.
What's important is that EUR/USD is basing around 1.12, which was the peak of ranges seen before the coronavirus.
That's the foundation for a more significant rise.
Dips are shallow.
The minimum technical correction of May-June's 1.0775-1.1422 rise was 1.1175.
After reaching 1.1168 EUR/USD has quickly bounced to trade above a fast-rising 21-DMA, now 1.1222 nL1N2E00C9.
The strength of today's PMI data is likely to spur expectations for a fast-paced euro zone recovery, giving a bullish market more cause to buy nL1N2E00EInZRN000K2U.
EUR/USD Click here