A major reversal occurred on the EURUSD market this afternoon. The main currency pair has been trading lower throughout the day and even briefly broke below the 1.0900 support zone in the aftermath of a 'hawkish' NFP report release for December. However, this plunged turned out to be short-lived and release of a soft ISM services data for December triggered significant weakening of the US dollar. As a result, EURUSD jumped and tested resistance zone ranging around 1.10 mark.
Taking a look at EURUSD chart at H1 interval, we can see that the pair failed to break above the 1.10 resistance zone and trimmed part of the gains later. Nevertheless, it continues to trade above the 1.0965 mark, which is the neckline of a double bottom pattern. A textbook range of the breakout above the neckline suggests a possibility of a move to as high as 1.1030. However, in order to reach this area, bulls would first need to clear the aforementioned 1.1000 resistance zone as well as 200-hour moving average that can be found slightly above it.
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Source: xStation5
