EUR/USD Price Analysis: Back above 1.13, falling channel breakout on 1H
- Risk-off is again boding well for the single currency.
- EUR/USD's hourly chart suggests the pullback from recent highs has ended.
A worsening of risk aversion following President Trump's coronavirus speech at 01:00 GMT put a bid under the safe haven euro, pushing EUR/USD higher from 1.1266 to 1.1334.
The pair's hourly chart is now reporting a falling channel breakout. The pattern indicates the pullback from recent highs near 1.15 has ended and suggests scope for a move higher to immediate resistance at 1.1365.
So far, however, the follow-through to the falling channel breakout confirmed by the previous hourly candle has been negative. The currency pair has backed off to 1.1310 from session highs near 1.1334.
If the current hourly candle keeps the breakout valid, more buyers could join the market, lifting the pair to resistance at 1.1365, above which the focus would shift to the psychological hurdle of 1.14.
Alternatively, a failed breakout could yield a re-test of session lows near 1.1250.