EUR/USD Bullish Breakout Above Critical 1.1730 Resistance Zone

Technical analysis of Forex market

The EUR/USD broke above the key resistance zone (dotted red) and is showing the start of bullish momentum. There could space available for a bullish continuation towards the 100%Fibonacci target at 1.1958, if price manages to stay above the broken resistance level.

The EUR/USD bullish breakout might trigger a wave 3 (blue) pattern, which becomes more likely if price builds a continuation pattern (such as a bull flag on the 1 hour chart).

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The EUR/USD could be building a 5 wave pattern (green) within wave 3 (blue). Any bearish pullback could still be part of a wave 4 (green) as long as price stays above the top of wave 1 (green).