Looking at the chart on the weekly time frame for the EUR/USD pair, we see that the euro started the week well and continued towards higher levels. The break was made with support at 1.21500. There is a possibility that the chart will create a FLAG pattern, which is a confirmation of the continuation of the bullish trend. The first next target above is 1.23000, followed by 1.25000 psychological level traders. Our goal may be the previous high from January 2018, which is 1.25700.
On the daily time frame, we see support at 1.21500 and a potential continuation towards higher levels. The first up is the resistance at 1.23000 and is likely to continue even higher towards 1.24000. The growing channel in which the chart moves is a potential help to us in determining the short-term next movement of the EUR/USD pair. For the bearish scenario, we are looking at a resistance of 1.23000, but above all, we need confirmation for something like that.
The EUR/USD pair moves in the input channel on a four-hour time frame, with certain pullbacks inside that channel. The pair found support at 1.21500 with support for moving averages MA50, MA100, and MA200. Within the channel, we can draw a smaller trend line, and the EUR/USD pair made a break above, and now we can watch the continuation of the bullish scenario.
The EUR/USD pair caught some fresh offers on the first day of the new trading week and continued to scale more and more through the early European session. The positive intraday move was exclusively sponsored by continued sales around the US dollar, which remained depressed amid a prevailing risk environment.
The global sentiment for risk remains well underpinned by the latest optimism about the Brexit agreement at the last minute. After US President Donald Trump finally signed a $ 2.3 trillion pandemic relief and spending package, it has been further boosted.
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