EUR/USD is close to reaching the minimum objective for a technical correction of its rise since March last year and is well placed to rise further.
EUR/USD rallied from 1.0636 on March 27, 2020, to 1.2349 in January this year before falling to reach 1.1741 EBS today.
The 38.2% retracement of the prior rise at 1.1695 represents a modest correction of a big rise.
Corrections are healthy for trends, and trends are the trader's friends. nL1N2LS0DG
The reverse has unfolded slowly, which is good.
Changes it has brought about are unlikely to be reversed quickly, so bets on a rise, which were weighing on the bull trend, are unlikely to be bought back soon.
Without their restraint, a future rally will be more sustainable.
The USD and U.S. yields now in the spotlight played little part in last year's rally, which was sparked by Europe's rescue fund that took effect on Feb.
19, 2021, and should support EUR/USD. nL1N2LR0E3
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