The pair seems determined to resume its upside momentum after a minor retreat. It was trading at the 1.1910 level at the time of writing the article and it is expected to climb higher if the US Dollar Index hits new lows.
Technically, the rate escaped from a narrow range and from a descending pitchfork signaling further growth as EUR/USD accumulated more bullish energy in the past weeks. Powell's speech at the Jackson Hole has disappointed the USD's buyers, that's why the greenback droped. The euro's strength is not a reason for that.
EUR/USD stabilized above the broken upper median line (uml) and above the PP (1.1860) level. The next upside target stands at the 1.1959 level. A breakout of this static resistance suggests buying as the quote will be expected to register a broader rally.
The 1.2 level is seen as a potential upside target as well. I believe that the current breakout signals a valid breakout of this obstacle as well.
- EUR/USD Trading Tips
Buy above today's high of 1.1929 with the first target at the 1.20 psychological level, or wait for a valid breakout above the R1 (1.1959) and place your target at the R3 (1.2116) level.
Sell only after a breakdown below 1.17, the bullish bias remains intact as long as the rate is located above this level.
