The EUR/USD has potentially formed a base, setting the stage for a potential rally in the days to come. The world’s most heavily-traded pair managed to defend the pivotal 1.1530 level following yesterday’s sell-off. It has now turned positive on the week, rising above last’s week low in the process. This therefore suggests that the bearish-looking weekly candle (inverted hammer) from the week before may have been a bear trap. If this is the case, rates ‘should’ now go above last week’s high (1.1730/5) as that’s where the next pool of liquidity will be resting. What happens thereafter will depend on many factors, ... (full story)