Due to the intraday positivity and failure to consolidate below the ascending trendline around 1.2835, the pair expressed significant bullish reaction and managed to breakthrough 1.2980-1.3000.
Yesterday, the pair managed to come back inside the previous consolidation range 1.2970 -1.3240 before achieving its projection target.
As long as the EUR/USD pair is trading above 1.2950, it is likely to push the pair towards testing 1.3110 and 1.3170.
The long-term trend remains bearish targeting 1.2560 provided that zone of 1.3240 remains intact.
Looking at the 4H chart, the EUR/USD pair was trading within a triangle pattern. That is why we were looking for a breakout opportunity, as mentioned yesterday.
As expected, breakthrough of the upper limit 1.2980-1.3000 (confluence of supply zones) activates the bullish breakout scenario opening up the way towards 1.3150 then 1.3190 (May 8). This is probably taking place today.
Retesting of level 1.2980 will probably provide a valid BUY opportunity with targets at 1.3070, 1.3150 then 1.3190 while SL should be placed below 1.2950.
