Euro Regains 1.2945; Daily Reversal Bottom in the Works

This morning the EUR USD survived an attempt to accelerate to the downside and regained the Fibonacci support at 1.2945. This is key to the bottoming process.

This morning the EUR USD survived an attempt to accelerate to the downside and regained the Fibonacci support at 1.2945.  This is key to the bottoming process.

The current set up on the daily chart has this pair in a position to post a daily reversal to the upside.  Now that the lower low has been traded, the best signal that short-term bottom has been formed will be a higher close, a close above the opening and a close above 50% of the day’s range.

If this condition exists on the close then look for a followthrough rally tomorrow to confirm the bottom and set up a minimum retracement to 1.3233 to 1.3315.