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Fan Yang

EUR/USD in a Key Bullish Reversal Breakout

EUR/USD has been bearish throughout 2018 and the first half of 2019. However, I think price has been developing a price bottom in May and June and is now in a bullish breakout from that bottom.

$EURUSD Daily Chart

(click to enlarge)

Bullish Breakout:
- The daily chart shows many signs that bulls are taking over.
- First of all, there was a double bottom right above 1.11 when price broke above 1.1250. 
- Then, price was able to anchor above 1.12 - this confirmed the double bottom.
- After holding above 1.12, price rallied further, breaking above the 1.1330 resistance area.
- Price also broke above the 200-day simple moving average (SMA).
- The RSI has pushed above 60, which reflects lost of the prevailing bearish momentum.
- I think a hold above 1.1250 would help confirm the bullish breakout.
- In this scenario, we can be looking at EUR/USD going to up at least 1.1450 with the 1.1515-1.1570 support/resistance pivot area in sight as well.
- For now, I would say 1.16 should be the most aggressive bullish outlook for the next couple of months and possibly for the rest of 2019. 

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