The euro rallying after the eurozone’s Q1 GDP showed a smaller contraction than expected.
The major support at 0.8560 has held well against sellers’ multiple attempts to break out. The rally above 0.8605 could shift the balance in favor of the demand side.
The formation of a head and shoulder may suggest a reversal in the coming hours. A break above the neckline which coincides with the resistance level of 0.8618, acts as a confirmation. 0.8645 would be the next hurdle, while 0.8590 acts as the immediate support.
