FX.co ★ EUR/USD Inverse H&S Activated, 200 Pips Growth Ahead!

EUR/USD increased as much as 1.2203 today ignoring a critical resistance area. Passing above the immediate resistance levels makes the pair very attractive again. Actually, today's breakout signals further growth in the short-term.

USD extends its sell-off on Powel's dovish testifies regarding inflation. Today, the US is to release important economic data such as the Prelim GDP, Durable Goods Orders, Core Durable Goods Orders, Unemployment Claims, and Pending Home Sales.

EUR/USD is strongly bullish, so some better than expected US figures could bring only a minor and temporary retreat after the current rally.

EUR/USD Upside Confirmed!

EUR/USD has finally managed to breakout above the descending pitchfork's upper median line (UML) and through the R1 (1.2181) signaling a further growth towards 1.23 and 1.24 levels.

Yesterday I've told you that breaking above the immediate resistance levels confirms an Inverse Head & Shoulders pattern which could bring a 200 pips growth in the upcoming period.

Technically, EUR/USD could still decrease to retest the broken upside obstacles if the US data will come in better than expected these days.

Trading Tips!

The current aggressive rally, the H4 candle, represents a bullish signal. The first upside target is seen at the R2 (1.2248) level, while the second upside target, obstacle, is seen at the first warning line (WL1).

Validating the H&S pattern signals an important upside movement towards 1.24 - 1.2450 levels.