Our outlook on EUR/USD remains higher following a sharp rally the past week. As long as it can trade and hold above the 1.3772 level, we look for the pair to strengthen further towards the 1.3850 level where a violation will turn attention to the 1.3900 level and then the 1.4000 level, its psycho level.
Its weekly RSI is bullish and pointing higher supporting this view. Conversely, to annul its past week gains it will have to return below the 1.3772 level.
Further down, support lies at the 1.3685 level. Further down, support is seen at the 1.3600 level and then the 1.3561 level where a break will turn focus to the 1.3476 level.
All in all, EUR remains biased to the upside on further recovery.
Guest post by FX Tech Strategy
