EUR/USD upside reversal

EUR/USD aggressive breakout

The EUR/USD pair registered a strong growth after the US reported higher than expected inflation. As you already know from my previous analysis, EUR/USD could develop a strong upwards movement if it makes an upside breakout from the extended range between 1.1366 and 1.1238 levels.

As you can see on the H4 chart, the pair dropped a little after its previous breakout above 1.1366 but it has found strong demand around 1.1280 failing to come back down towards 1.1238 signaling strong buyers.

EUR/USD trading conclusion

The aggressive breakout above 1.1388 former high announced an upside continuation. You already knew from my previous analysis that escaping from an extended range pattern could bring great trading opportunities. After its amazing growth, we cannot exclude a temporary decline before reaching new highs. 1.1500 psychological level and the 1.1526 former low are seen as potential upside targets.