The market reversed last Friday, but bulls faced with resistance by the Daily Super Trend Line, which led to the current downward correction, which hasn't been finished yet. Previously, the pair hasn't achieved 6/8 Murrey Math Level and bounced higher. Thus, it seems like we're at the early stages of an upward price movement, which could reach August's high. However, the price is likely going to test the H4 Super Trend and 4/8 MM Level in the short term, which both could act as support. If so, there'll be a green light for another advance.
The nearest bullish target is 7/8 MM Level, which acted as resistance before. If the market goes through this level, we should watch +1/8 MM Level as the next target. This level could be a starting point for a downward correction towards 7/8 MM Level. Also, if the Super Trend Lines forms a 'Bullish Cross', there'll be more evidence that reverse has occurred. Additionally, if the price fixates below 4/8 MM Level, the bullish outlook will be at risk. If this happens, we should wait for the price returning above H4 Super Trend Line as confirmation.
The bottom line is that EUR/USD might have reversed, so the pair is going to continue rising in the coming hours. The market's fixation above 5/8 MM Level will confirm this scenario.
