EUR/USD rallies from right above 1.17 confirming strong bulls. The quote was into a minor retreat in the short term, but it is still located in the buyer's territory, so another upside momentum is favored.
The pair edges higher due to the USDX's sell-off. A USDX's deeper drop pushes EUR/USD towards new highs. Technically, the price has shown some oversold signs lately, so the upside remains in the cards as long it stays above 1.17.
EUR/USD has come back down to retest the 1.1694 level, the black downtrend line, and the second warning line (wl2). The most recent bullish candle signals that the temporary drop is over and that the pair could resume its upside movement.
Breaking above the 1.18 and above 1.1831 former high suggests buying as the price should approach and reach the 1.2 psychological level again. Personally, I believe that only another drop under 1.17 could invalidate the upwards scenario and could add a selling opportunity.
- EUR/USD Trading Tips
Sell a bearish closure under 1.1694 static support with the target at 1.1495 level. This scenario could take shape if EUR/USD fails to take out the 1.18 psychological level.
Buy a new higher high, jump, and close above the 1.1831 level. 1.2 stands as the first upside target.
