The EURUSD had a bullish momentum yesterday, topped at 1.4375 and closed at 1.4326. Better than expected Germany and French manufacturing and services PMI lead the Euro higher, while US Dollar was hurt by risk appetite on better than expected home sales data.
On h4 chart below we can see that the bearish channel has been violated to the upside indicating bearish failure and potential bullish scenario for the upcoming week. Key resistance level (also potential bullish target) is seen at 1.4446 (August 05 high). Break above that area should trigger further bullish scenario towards 1.4719. Also notice that we need a consistent move above 1.4336 for a further bullish scenario. A failure to do so could diminish the bullish view. On the downside, important support is seen at 1.4250 area (38.3% Fibo retracement of 1.4044 â€“ 1.4375). Break below that area could lead us back towards 1.4050 area. Have a great weekend and see you guys next week