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EUR/USD developing bullish momentum after a breakout

In the 4H chart, EUR/USD is signaling a bullish outlook as it confirms a bullish breakout.

EUR/USD 4H Chart 8/5

(click to enlarge)

Bullish Breakout:
- The 4H chart shows that EUR/USD has been consolidating after the late-June plunge to 1.0910. (This was risk aversion due to Brexit).
- Price action in late July broke the structure of the consolidation pattern after pushing above 1.1185. 
- Price also climbed back above the cluster of 200-, 100-, and 50-period simple moving averages (SMAs) in the 4H chart. 
- Furthermore, the RSI pushed above 70. 

- After the sharp swing from about 1.0955 to about 1.1230, EUR/USD retreated. 
- The pullback then found support around 1.1112. 
- Price remained above 1) the cluster of SMAs, 2) the middle of the broke consolidation range. 
- Also, the RSI held above 40, which reflects development of bullish momentum since that late July push. 

Bullish outlook:

- I think this week's price action is setting up a bullish outlook in the short to medium-term.
- To the upside, we will have a challenge around 1.1250, or even simply the previous high at 1.1230. 
- Price will be challenged by a falling trendline. 
- In my opinion, upside towards 1.1370-1.14 is possible, the likelihood will be lower than the target at 1.1230-1.1250. 
- I am keeping any bullish or bearish outlooks short-term. The medium to long-term mode has been a choppy sideways consolidation. In this mode, there is not clear trend, and you can get whip-sawed (see gains and losses back and forth) frequently if you decide to hold a position in anticipation of a trend. 
- Basically - there might be some momentum developing, but it is only applied to the short term outlook.