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.
