EUR/USD Bullish Breakout in Uptrend Around the Corner

The EUR/USD made a key bullish breakout above the 21 ema zone. This is taking place within a clear and confirmed uptrend. Can the EUR/USD continue or will it make a pullback first?

Price Charts and Technical Analysis

The EUR/USD could in fact do both. The decision will depend on whether price action is able to break above the previous top of wave B (purple). This would invalidate the ABCDE triangle pattern and clear the way for the bulls to aim at the next target zone at 1.20. A bearish bounce, however, would indicate either a wave 1-2 or wave D-E. In this case, the Fibonacci retracements levels are expected to hold and act as a support zone.

The bullish outlook remains valid as long as price stays above the long-term moving averages (MA). Only a break below those would invalidate (red x) the bullish structure. The current consolidation pattern, however, is likely to become a bullish continuation chart pattern.

Good trading,

Chris Svorcik

The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter

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