EURUSD last week broke out and above the major trend line resistance coming from 1.1870-1.19 area. Price has stopped making lower lows and lower highs and there are increased chances that EURUSD is now correcting the downward movement from 1.19.
EURUSD price action has provided us with a bullish RSI divergence signal and by breaking the blue trend line we have a confirmed low and potential reversal formation. Our first bounce target is the 38% Fibonacci retracement at 1.1670. EURUSD has the potential to move even higher towards 1.1760. At current levels we prefer to be bullish or neutral, but not bearish. The downside potential, if any, I believe is very limited.
