After a significant breakout of a daily triangle, the pair has found some great support on top of the 1,39 level coinciding with the 200 moving average. We have then seen a pullback towards the former triangle baseline.
Does this mean that we now have a nice setup for a bearish resumption ?
From a technical stand point, the recent breakout means something and we think that the EUR/USD is on the verge of a major reversal. However, we have to keep in mind that macro-economic outlook remains very unclear and not only in Europe.
A break below 1,4090 (friday low) in the beginning of the week would certainly put additional pressure on the EUR/USD with a new test of 1,39 expected. In this event, the reversal structure would definitly take shape.
Inversely, a break above 1,43 would probably expose 1,45 (top of the triangle).