EUR/USD Price Analysis: Recovery rally gathers pace

• EUR/USD printed its biggest single-day gain in over a month on Tuesday. 
• The daily chart now favors a continued rally to former support-turned-hurdle at 1.1785.

While EUR/USD's recovery rally is gathering pace, the pair remains on track to post its first monthly loss since May. 

The pair jumped by 0.67% on Tuesday, its biggest single-day gain since Aug. 28. More importantly, it formed a green marubozu candle, as buyers remained in control from day's open to close. 

The marubozu indicates that bullish sentiment is quite strong. Also, it confirmed the reversal higher signaled by Monday's bullish inside day candlestick pattern. 

As such, EUR/USD could test the former support-turned-resistance of the head-and-shoulders neckline at 1.1785. 

At press time, EUR/USD is trading at 1.1747. Even if the pair rallies to 1.1785 as suggested by technical charts, still it would end the month with at least a 1% loss. Tuesday's low of 1.16608 is the level to beat for the selles. 

Daily chart

Trend: Bullish

Technical levels