EUR/USD: Is the 1.1770 level (a move thorough) the key for confirmation of a base?
Here is an interesting overnight though from Lloyds on the euro and a notable level
Prices saw a brief dip to 1.1685 support yesterday, before bouncing hard. However, 1.1770 intra-day resistance has capped overnight. A move through that resistance is needed to confirm 1.1685 as a more significant base and a shift back to re-test the highs, if not new highs. While under, with daily studies still in correction mode, the risks remain for a deeper correction. 1.1600/1.1575 is support below 1.1685.
Overall, we still view pullbacks as corrective for a move towards 1.20-1.23. Long term, we believe 1.0350 was a major low, which completed the cycle from the 1.60 2008 highs. As such, we look for an eventual move back to the main medium-term resistance region between 1.2000 and 1.2350, while long-term targets lie in the 1.30-1.35 zone.
Over to ForexLive traders for thoughts?