Following its recent climb to the 1.10670 region, the EUR/USD currency pair experienced a retracement in price. The zone that lies between the 38.2% and 61.8% Fibonacci levels is expected to act as a potential reversal area, which may trigger a pullback before continuing the upward trend.
Our analysis suggests that the USD is likely to remain weak during this trading week, which reinforces our inclination towards a long position in the EUR/USD currency pair. The anticipated trend continuation coupled with the potential price reversal at the aforementioned Fibonacci levels presents an attractive opportunity for a favorable risk-reward ratio.
As such, we recommend considering a long position in the EUR/USD currency pair for the current trading week.