Consolidation above the previously broken downtrend depicted on the chart goes on for the 4th day in a row. This took place after finding solid supply around 1.3200.
The weekly candlestick was a pin-bar representing hesitation after failing to step above the previous weekly high 1.3400
The EUR/USD pair stalled on Friday, forming a shooting star just below key 1.3400 resistance without actual testing of the level but today the market has already bypassed 1.3400 reaching 1.3450, the first supply level to meet the pair.
We could potentially see a rebound from today’s high, back down toward support around 1.3400 then 1.3320. However, depending on the huge bullish momentum witnessed today, the pair may be able to achieve a daily closure above 1.3400.
In general, as long as the market is contained above 1.3400 on a daily basis, there is potential for shooting higher.
The 4H chart shows a potential for a bullish move towards the upper limit of the depicted channel. This would be around 1.3470 which would be visited if the bulls manage to fixate above 1.3435 on 4H basis.
Any bearish reversal has a target to deal with first to be able to shoot lower. This key level is located around 1.3400. Any 4H closure below 1.3400 will probably bring bearish momentum towards 1.3330 initially.
