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EUR/USD Remains in Rising Channel After Triangle Breakout

EUR/USD is in a bullish breakout. Its breaking out of a triangle that has been forming since the end of August, when price rallied to 1.1713, its highest since early January. 

EUR/USD Daily Chart 10/10

(click to enlarge)

The daily chart shows that when price broke above 1.13 last week, it essentially broke the triangle. Also, note that price basically treated the cluster of moving averages as support, which is a bullish sign. Furthermore, the RSI held above 40 after tagging above 70, a sign of continuing bullish momentum. 

Now, if there is a pullback, a bullish market should provide support above 1.12. There is upside first to 1.1450, then the 1.17 handle and the highs around there.

On the daily chart, we can also see that EUR/USD has been in a rising channel. The current breakout suggests that the channel support held again, and price has the channel resistance in sight. This gives the EUR/USD upside risk beyond 1.1713, perhaps even to 1.20.

Again, if we see a pullback and price finds support above 1.12 we can have more confidence about the bullish outlook.