EUR/USD rallies today and it seems determined to challenge the immediate critical resistance. USDX's current drop boosts the pair which is located in the buyer's territory. A bullish closure above 1.19 and another higher high suggets buying as the pair should approach and reach 1.2 soon.
Surprisingly or not, EUR/USD drops even if the United States inflation data comes in better than expected on Friday. Technically, the latest developments, the false breakdown below 1.18 suggests further growth.
The pair is trapped between the first warning line (wl1) and the upper median line (uml), an upside breakout confirms more gains. The failure to stabilize below 1.18 and below the channel's support indicates strong bullish pressure.
The bullish outlook is still valid as long as the price stays above the 1.18 level. I believe that only another lower low, drop below 1.1751, and under 1.17 validates a corrective phase.
- EUR/USD Trading Tips & Conclusion
Buy a valid breakout above the R1 (1.1923) with an immediate target at 1.2 level. R3 (1.2088) could be used as upside target as well if EUR/USD extends its rally.
Sell a drop below 1.17 with a potential downside target at 1.1495.
