The common currency managed to pare losses from Thursday as price recovered sharply into Friday’s close.
As a result, the euro closed above the key 1.1400 handle comfortably. This marks a four-month high for the euro.
Price action is now likely to aim for the 1.1500 handle. However, support near 1.1400 still looks a bit doubtful. There is still a risk of a move below this level.
The initial trend line will highlight this, in case the euro currency slips lower. This will open the test toward the 1.1347 level once again.
Alternately, a close above 1.1425 could signal a continuation to the upside.