EUR/USD has ignored the near-term upside obstacles and now is fighting hard to resume the upside movement. It is trading at 1.1440 level, the next upside target is seen at the 1.1495 level.
The currency pair has continued to increase even if the US data have come in better lately, the USDX's further drop has push EUR/USD higher. The eurozone Current Account and the German PPI disappointed in yesterday's session, maybe that's why EUR/USD has decreased a little to retest the near-term support levels.
Euro could appreciate further versus the greenback as the EU leaders reached a €750 billion coronavirus recovery package deal on Monday. The pair has come back to retest the 1.1422 broken resistance and the upper median line (uml) of the minor descending pitchfork.
As I've said earlier, the next target is represented by the 1.1495 higher high, a valid breakout above this level will validate a larger upwards movement. The outlook is bullish and it will remain the same as long as EUR/USD is located above the 1.1348 level.
EUR/USD Trading TipsAnother higher high, a jump above the 1.1469 level could validate a further increase towards the R2 (1.1574) level and towards the first warning line (WL1). The valid breakout above the upper median line (uml) and above the 1.1422 could send the rate far above the 1.1495 upside obstacle.
A further increase could be invalidated only by a EUR/USD drop below the R1 (1.1403) static support.