EUR/USD could rally to $1.0350 in the short term
In terms of technical analysis, the EUR/USD sent several major bullish signals yesterday by not only crossing the parity threshold, but also breaking out from the top of its descending channel in which it had been evolving since the beginning of the spring and through the top of its Bollinger Bands.
These signals pave the way for a rebound that could extend to $1.0350, which matches the mid-August high and was previously support in May this year and a major low in 2017. from mid-September at $1.02 will be an intermediate resistance to watch.
These short-term bullish prospects would be invalidated in the event of a decline below the parity threshold. In this case, a return to recent lows around $0.96 would be expected.
Entry: Buy above $1.00
Risk/return ratio: 3
Follow the evolution of the EUR/USD price with IG.