Guided by bullish 4-hourly diverging studies, the EUR/USD was able to dodge a major bullet overnight. Euro bears got dangerously close to testing the May 19th low of 1.2139, which is very near the key 50% retracement level of the entire bull market move from 2000 to 2008. With only one day left in the month of May, it looks like a key monthly trendline that extends off the all-time lows will also remain intact. The next hurdle for the EUR/USD's recovery comes in form of the 14-day MA (now at 1.2442). Above this pivot, along with a bullish breakout of weekly bear RSI trendlines (9 & 14-periods) would indicate that a sustainable recovery is in place.
