EUR/USD has broken out of the wedge pattern. Price has made a reversal off the 1.1650 lows and should continue higher this week. We could see a back test of the 1.17-1.1670 area before more upside today.
Blue lines - wedge pattern
Red lines - bullish divergence
Yellow rectangle - target
The bullish divergence in the RSI tells me that we should at least see a bounce towards 1.20. The EUR/USD pair should move higher the next couple off weeks. Support is at 1.1670-1.1650 and short-term resistance at 1.1750-1.1760. Breaking and closing above 1.1760 will confirm that the bounce has started towards 1.19-1.20. I'm bullish about EUR/USD.
