A strong rally resuming, as we had expected after a corrective consolidation bias to start the week, to just stall at a notable barrier at 1.1380.
The strong bounce after a prod at 1.1069 to another new recovery high, as we had anticipated, has reinforced the late April extension above 1.1249, which produced a shift to a more bullish tone into May.
We see an upside bias through the new 1.1370 peak; the break here opens risk up to key targets 1.1449, maybe for 1.1534.
But below 1.1305 aims for 1.1200, which we would look to try to hold.
Short/ Intermediate-term Outlook - Upside Risks:
We see a more positive tone with the bullish threat to targets 1.1449 and 1.1534.
Above aims for 1.1680, maybe 1.1871.
What Changes This? Below 1.0957 eases bull risks; through 1.0786 signals a neutral tone, only shifting negative below 1.0658.
Momentum: The 8-day RSI, short-term momentum has corrected from OB and is re-energized.
2 Hour EURUSD Chart
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