FX.co ★ EUR/USD Upside Thrust Underway!

EUR/USD rallies as the USDX loses altitude again. The pair has climbed above 1.1901 yesterday' high and it seems determined to approach 1.2000 psychological level. The current momentum could attract more bulls, so EUR/USD is expected to trade higher.

EUR/USD breakout needs to be confirmed in the short term before it resumes the upwards move. USDX's drop below 92.53 level makes the index more vulnerable for more losses. This scenario suggests that EUR/USD should reach new peaks soon.

EUR/USD has escaped from the descending pitchfork's body and from the minor narrow range, technically, the upside breakout could bring a great long opportunity. The R1 (1.1922) is seen as a first upside target.

A valid breakout (close and retest) of 1.1922 suggest buying with potential targets at R2 (1.2050), and higher at the R3 (1.2134).

• EUR/USD Trading Tips

EUR/USD should climb way higher, above 1.20 if closes above the R1 (1.1922) level. R2 (1.2050) and R3 (1.2134) should attract the rate in these circumstances.

Sell only from below 1.17 if EUR/USD registers a sell-off after today's US data.