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The EURUSD rallies on ECB rate decision but remains under pressure

The EURUSD has rallied 13% from high to low to retest the long term bearish structure around the 1.20 level which confluences with the July 2012 lows. This is a massive level of resistance and historic price action suggests a pullback before a possible breakout. Today the ECB decided to maintain its interest rate and coronavirus-stimulus program unchanged. The Euro rallied against the US Dollar but remain below the bearish value zone (1.20 + structure). The US Dollar remains very much under pressure which is pushing the Euro higher but with today's reference to more stimulus coming from the ECB we could see a weaker Euro in the coming days/week.

Subscribe to my analysis and trade ideas for only $34.95 A pullback to the 1.38 level is possible in this scenario, and that qould be a 50% retracement from high to low giving the opportunity for bulls to jump in for a break out of the long term structure. Personally I see the downside more plausible on a weaker Euro at these key levels. I will be sending my exact trade idea to my PRO subscribers.

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