EURUSD is trading above 1.14. Price is now breaking above a long-term downward sloping trend line resistance that connects the 2018 highs and the recent 2020 highs at 1.1450 area. EURUSD has been mostly moving sideways the last few months but now the chances are in favor of the bulls.
EURUSD by breaking above the black trend line has provided us with a bullish signal. This break out has medium-term bullish implications on the trend. This means that we should expect more upside over the coming weeks. For this break out to be confirmed we should continue to see price make higher highs and higher lows.
Traders should be focused on the bullish side of EURUSD. Price will remain in a bullish trend as long as we do not see it break below the blue rectangles. 1.12 area is now key support. We are bullish above this level looking for a move towards 1.16-1.17. A break below 1.12 will cancel our bullish view.
