the EUR/USD bulls remain strong after pushing above the resistance trend lines (dotted purple). The momentum seems to be a wave 3 (purple), which indicates more bullishness after the wave 4 pullback is completed.
The EUR/USD is expected to complete the wave 4 (purple) pullback at the FIbonacci support levels (green box). The wave 4 is usually shallow, but even a retracement towards the bottom of the uptrend channel and 6.8% Fib is possible (blue box). Only a break below the channel and the top of wave 1 plus 144 ema close would invalidate (red x) the bullish outlook.
The EUR/USD bounce at 1.1525-50 could create a push higher to the next target zone at 1.1650. A continuation of the uptrend would aim at targets in the 1.1725-1.18 zone. This is when a larger bearish retracement could emerge.
The analysis has been done with SWAT method (simple wave analysis and trading).
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