June 5 (Reuters) - FX traders should note that EUR/USD usually closes in positive territory in June and this could well be the case again.

A study of the EUR/USD's performance for each June since 2000 shows it has risen in 16 of the last 26 years, highlighting a seemingly inbuilt structural strength. Seasonality should not be considered in isolation, but it's a useful tool combined with other factors.

EUR/USD's downside has been limited by the 1.1577 Fibo, a 61.8% retrace of the 1.1409 to 1.1849 (March to April) EBS rise, in May and that could well fuel a recovery.

The 61.8% retracement is known by some as the "golden ratio" due to its outsized significance in determining the direction of prices.

There is scope for a retest of the May 29, 1.1686 peak, a break above which will accelerate gains. Note June is usually a bad month for the dollar and that should help underpin EUR/USD.
Daily Chart


Seasonality Chart


(Martin Miller is a Reuters market analyst. The views expressed are his own)