In our last analysis on EURUSD we noted that a reversal to the upside was justified and a confirmation would come if and when price were to break above the downward sloping resistance trend line at 1.1570.

Blue line - resistance trend line

EURUSD is now trading at 1.1606. Price has broken above the blue downward sloping resistance trend line and above the recent high of 1.1587. Price has potential for a bigger bounce towards 1.1670 if not higher, starting a major reversal. This is not the time to be bearish. Bulls are getting control of the short-term trend and soon the Daily trend will change also to bullish. After 1.1670 our next bounce target is at 1.1765. It is important for bulls to see price making higher highs and higher lows. A back test towards the blue trend line is also justified and could be a great opportunity to create a higher low before moving higher.