Yesterday we looked at the pennant that EUR/USD was forming and the possibility of a bullish breakout after it found support at a previous support pivot of 1.1071. Let’s follow up on the technical development.
The 1H chart shows that EUR/USD indeed broke above the pennant, which prevents a bearish outlook and at least signals a sideways market if not a bullish continuation. The RSI pushed back above 70, which revives the bullish momentum in this time-frame.
Now, if price can hold above 1.1150, and the 1H RSI above 40, we should have a bullish attempt to break 1.1290, which would open up 1.1460, the next support/resistance pivot seen in the 4H chart.
A break below 1.1150 however flattens the outlook and puts pressure back towards the 1.1070 area.
Previous Post by Author: Gold and Silver Remain Choppy but Bearish