The euro currency staged an impressive rebound from the 1.1730 area against the US dollar last week, keeping the ongoing uptrend firmly in place.
EUR/USD technical analysis suggests that the pair is on course to rally towards the 1.2100 area.
EUR/USD medium-term price trend
The EUR/USD pair quickly retraced all of it’s post-FOMC losses, as the greenback once again gave back its hard-fought gains against the major currencies.
EUR/USD analysis over the medium term is showing a coming rally towards the 1.2100 resistance area.
The daily time frame continues to show that the pair is trapped inside a broadening ascending wedge pattern between the 1.1750 and 1.2100 levels.
Last week’s move under the broadening wedge pattern appears to have been a false downside breakout, placing the top of the wedge back in focus.
Traders now need to anchor the daily candle above the technically important 1.1890 level to secure further technical buying interest.
Key medium-term resistance for the EUR/USD pair is located at the 1.1940, 1.2000, and 1.2100 levels.
EUR/USD short-term price trend
EUR/USD technical analysis shows that the pair has a bullish bias over the short term, while the price trades above 1.1810.
EUR to USD analysis shows that a bullish inverted head-and-shoulders pattern will form if the price reaches the 1.1915 area.
According to technical analysis, the inverted head-and-shoulders pattern could cause the EURUSD pair to rally towards the 1.2110 area.
Key technical support for the EUR/USD pair this week is found at the 1.1830, 1.1790, and 1.1750 levels.
EUR/USD technical summary
EUR to USD analysis is showing increasingly positive technical signs over the short and medium-term. A rally towards the 1.2100 level appears highly probable.
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