The EURUSD continued it’s bullish momentum yesterday, topped at 1.5045 and closed at 1.5007. The bullish power succeed to pass the test and move above critical area 1.4850 – 1.4950. I think we are now entering a new phase of a bullish scenario with 1.6000 area as potential long term technical target. A look at my daily chart below reveals my reason. On February 2008, after prevented further upside momentum by being a strong resistance area for a few months, 1.4950 level became a starting point of a new bullish phase which peaked at 1.6000 area on April 2008 once it broken to the upside.
Compared to current situation, the 1.4950 resistance level is much easier to break without significant downside correction, indicating the bullish momentum is much stronger than what happened on 2008.
The bias is bullish in nearest term targeting 1.5080 and 1.5140 area before aim for 1.5300. Key support level for today is 1.4950/60 area and the lower line of the bullish channel (see the h4 chart below). As long as the pair able to stay above that area, bullish momentum should remains strong. Break below that area should trigger further downside correction towards 1.4880/50 but short position is not recommended.