The chart below shows the pair EUR/USD to have formed a bullish pattern which is clearly indicated below in the form of a reverse head and shoulder pattern. The projection of this pattern gives reason to believe that it could maybe drive the price up in a strong bullish momentum to $1.20.
On the other hand, prior to reaching this hegemonic position, the pair EUR/USD will come across several challenges which it will have to break through first. The two main obstacles it will face would be to reach resistance zone (colored in red) which is priced at $1.18015. Moreover, the second would be to trade above all moving averages which would reinforce the belief of a bullish momentum holding dominance over the pair. The potentials of the EUR/USD price declining towards the support zone (colored in green) which is priced at $1.12978 is apparent as the price is trading below the downward trend line. However, due to the pattern displayed below the bulls do hold power at present.
The Balance of Power chart below emphasizes the strength of the bulls which are present in the market for the pair. This is because it is evident that the chart below shows gradual growth towards the upside.
Major support: 1.12978
Major resistance: 1.18015
