EUR/USD Price Analysis: Support structure stands in the way of a full blown breakout
- EUR/USD has carved out an M-formation with a 50% mean reversion eyed.
- 1.0520 guards 1.0480 while bulls will need to get above 1.06 to open risk to 1.0700.
EUR/USD was little changed at 1.0547 but it fell to 1.0524 was trading just above this year's low of 1.04820 reached on Jan. 6. after Federal Reserve Chairman Jerome Powell offered no major surprises on his second day of testimony before Congress and as investors waited for jobs data on Friday.
The Fed's decisions will be hinging on data to be issued before the US central bank's policy meeting in two weeks which makes this week's US nonfarm Payrolls event key for EUR/USD. The price is rested above key structural support ahead of the event as the following illustrates:
EUR/USD daily charts
The price has carved out an M-formation which is a pattern that tends to see a retest of the neckline near a 50% mean reversion in this particular case. 1.0520 guards 1.0480 while bulls will need to get above 1.06 to open risk to 1.0700.