EUR/USD rallies after the ECB and is almost to take out an upside obstacle. It's trading at 1.1895 level at the time of writing, a valid breakout above the 1.1900 psychological level could attract more buyers.
USDX's today's sell-off pushed EUR/USD higher, but it remains to see how the index will react at the 92.55 static support. A rebound from this downside obstacle followed by a strong bullish momentum could lift the greenback.
EUR/USD breakdown below 1.18 was invalidated by yesterday's bullish engulfing pattern. The pair has tested and retested the upper median line (uml) of the descending pitchfork failing to close below it or to reach at least the S1 (1.1742) level.
As you already know from my previous analyses, a selling opportunity could appear only after a potential drop below 1.17 level. EUR/USD is stuck between the upper median line (uml) and the first warning line (wl1).
A valid breakout above the warning line (wl1) suggests further growth at least until the 1.2000 psychological level.
- EUR/USD Trading Tips
Buy a bullish closure above the warning line (wl1) followed by a retest, the immediate target is seen at 1.2 level. A breakout through the psychological level would confirm a larger upside movement. R3 (1.2203) level is seen as a potential target.
Sell only a valid breakdown below the 1.17, or another lower low, a drop below 1.1751 yesterday's low.
