EUR/USD: the euro displays a key bullish signal following Monday's events, will a rally materialise this week?

After threatening to break below the key psychological threshold of 1.10 on Monday, the EUR/USD pair eventually posted a very strong rebound, helped by the news.

An intervention by Christine Lagarde seems to have given the first impetus. No resolutely dovish remarks could be made, but it seems that the mere fact that the ECB's new boss does not mention the possibility, even in the distant future, of further rate cuts seems to have reassured the market.

Simultaneously published construction spending did nothing to fix things for the greenback, with a 0.7% drop for the month of October, compared to a 0.3% increase forecast by the consensus.

From a charts perspective, it should be noted that the increase posted since Monday has led to several key technical buying signals.

The EUR/USD easily crossed the 100 and 200-hour moving averages, as well as the 1,1050 resistance line, but above all crossed the 100-day moving average, closing above this indicator for the first time in around 30 days.

At this stage, the next resistance line to be taken into account is the psychological threshold of 1.11, followed by the 200-day moving average at 1.1160, and then the resistance at 1.1180, and the psychological threshold of 1.12.

Finally, it should be noted that the next important statistic report is today (Wednesday), where investors will especially be watching the ADP report on US private sector job creation.

Currently, the EUR/USD pair is trading around 1.1090 on the forex.

Daily EUR/USD chart