EURUSD broke above a major trend line from the August 2015 high of 1.1713 to the May 2016 high of 1.1616 at 1.1445 on the weekly chart, and extended its bullish movement to as high as 1.1908, indicating that a double bottom pattern had been formed.
On the 4-hour chart, the pair stays in a rising price channel with support at the bottom trend line now at around 1.1715. As long as the channel support holds, the bullish movement from 1.1312 could be expected to continue and next target would be at the 50% retracement taken from the May 2014 high of 1.3993 to the January 3 low of 1.0340 at around 1.2165. The final target for the long term uptrend would be at the measured move target of the double bottom pattern at around 1.2700.
On the downside, a clear break below the bottom support trend line of the channel on the 4-hour chart could take price back to test 1.1650 support, below this level will indicate that correction for the long term uptrend from 1.0340 is underway, then the following pullback could bring price back towards 1.1460.
There is a bullish trend line on the daily chart, with support now at around 1.1460. Strong rebound could be expected after touching the trend line support.
Technical levels
Support levels: 1.1715 (the bottom trend line of the price channel on the 4-hour chart), 1.1650 (the July 27 low), 1.1460 (the bullish trend line on the daily chart).
Resistance levels: 1.2165 (the 50% retracement), 1.2700 (the measured move target).