EUR/USD: The euro moves back above parity

EUR/USD may rise 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 where it had developed since the beginning of spring and through the top of its Bollinger Bands.

These signals pave the way for a rally that could extend to $1.0350, matching the mid-August high and previously supported in May this year and a major low in 2017. from mid-September at $1 .02 will be an intermediate resistance to watch.

This short-term bullish outlook would be invalidated in the event of a drop below the parity threshold. In this case, a return to recent lows around $0.96 is expected.

Entry: Purchase over $1.00

Stop: $0.9950

Target: $1.0350

Risk/reward ratio: 3

Follow the development of the EUR/USD price with IG.


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