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EUR/USD - What Today's Rally Tells Us

Last Friday, EUR/USD fell after the market saw better-than-expected US NFP numbers .However, as we can see in the 4H chart, that reaction has been completely reversed during the 6/8 Monday session.

EUR/USD 4H Chart 6/8


(click to enlarge)

Note that the NFP-reaction actually provided a situation that ended up confirming the bullish mode. Price fell back to the cluster of 200-, 100-, and 50-period SMAs, and respected them as support. The RSI, after pushing above 70, came down be held above 40, which reflects maintenance of the bullish momentum. 

The technical picture in context with the fundamental backdrop signals a bullish continuation pass the 1.1380 high from last week, and pass the May high around 1.1466. It at least puts the 1.15 handle in sight for this week, with risk of pushing towards the 1.1750 level, where the 200-day SMA and a previous support pivot reside - refer to the daily chart.

EUR/USD Daily Chart 6/8
(click to enlarge)

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