The USD started the week with some resilience but relinquished those gains by Wednesday. The EUR/USD seems to be regaining its stride that began last week. Let’s follow up with the bullish price action.
The 1H chart shows that during the 4/21 session price already started to crack this week’s falling channel resistance. There was a retreat from 1.0780 but price action continued higher during the 4/22 session. As we get ready for the US session, it is testing the 1.08 handle. Price has essentially kept above the cluster of 200-, 100-, and 50-hour simple moving averages (SMAs), and the RSI has pushed above 60, which reflects loss of the prevailing bearish momentum this week.
The EUR/USD looks poised to retest the 1.0848 high from last week. Looking at the 4H chart, if price pushes above 1.0848, there would be a possible ABC correction scenario, where wave C is similar to wave A. This scenario would give EUR/USD a bullish projection towards the 1.10 handle.
At this point, failure to reach 1.0848, and a dip below 1.0715 would be a sign that EUR/USD has flattened. We should then wait for further consolidation to form a structure from which we can observe a breakout.
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