EUR/USD technical analysis: Eyes 38.2% Fib hurdle on pennant breakout
|- EUR/USD's 15-minute chart shows a pennant breakout – a bullish continuation pattern.
- The pair could see at least a 60-pip rise during the day ahead.
With short duration charts reporting a bullish continuation pattern, EUR/USD looks set to extend Tuesday’s 0.32% rally to 1.0967 – 38.2% Fib Retracement of 1.1110/1.0879.
EUR/USD’s 15-minute chart shows a pennant breakout. Pennants are continuation patterns, which accelerate the preceding bullish move.
The pennant breakout on the 15-minute chart indicates resumption of the rally from Tuesday’s low near 1.0880 and has created room for at least a 60-pip move to the higher side. As of writing, EUR/USD is trading at 1.0940.
Supporting the bullish case is the above-50 reading on the hourly chart relative strength index.
The bullish case would weaken if the spot falls below 1.0928.
15-min chart
Hourly chart
Trend: Bullish
Technical levels
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