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EUR/USD - Bullish Continuation

The EUR/USD is in a bullish continuation phase. 

(eurusd 1h chart, 4/17)

1) It held above the 200-hour SMA this week.
2) The pair broke above a falling channel last week and is staying above that channel resistance, which acted as support this week. 

Bullish targets:
The market looks poised to test the 1.3905 level, above which the next resistance will be the 1.3966, 2014-high.

Resistance, overbought, fibonacci retracement:
However in the near-term we can see resistance at 1.3683. The EUR/USD cracked it, barely putting in a new high on the week, but this is not a clear breakout yet.

The stochastic and RSI readings suggest the pair is overbought in the intra-session time-frame, and so we can expect some consolidation/correction in the 4/17 US session.

1.3860 is also 61.8% retracement of the 1.3905-1.3789 dip that started last Friday and ended this Wednesday session.

Bullish mode:
However, a bullish market should find support around 1.3820 upon a dip. This is a previous pivot and where the 200-hour resides at the moment. Below 1.38, the outlook turns more sideways, and even bearish in the short-term, though within the context of a bullish market seen in the daily chart.


(eurusd daily chart, 4/17)