The EURUSD pair continues to look well-bid on the foreign exchange market and is starting to exhibit signs that it could be prepared to stage a big price rally.
Something has been apparent, in that the EURUSD pair has absorbed bad news very well recently, and looks like it wants to head higher, much higher in fact.
Going forward, the path ahead looks fairly bullish for the EURUSD pair while the price trades above the 1.1330 support area. This could be a key bounce spot this week.
I think EURUSD bulls may be awaiting the EU PMI data and more confirmation that the Ukrainian situation is not about to spiral into something worse.
The above may seem strange since the fundamentals are clearly in the US dollar favour. However, the price action does not lie, and it appears that EURUSD wants to go higher.
According to the ActivTrader market sentiment tool, 51 percent of traders are bearish towards this pair, with the sentiment dropping just 1 percent from last week.
I believe that more upside in the EURUSD pair will be coming soon, however, I would like to see retail traders turning more bearish in the near-term.
EURUSD Short-Term Technical Analysis
The four-hour time frame shows that the EURUSD pair appears to be forming right-hand shoulder to complete a large, inverted head and shoulders pattern.
If we see a move a move back towards the 1.1480 area and the pattern activated, I believe the EURUSD pair could be about to surge to a new 2022 high.
See real-time quotes provided by our partner.
EURUSD Medium-Term Technical Analysis
Looking at the daily time frame and the EURUSD pair has bounced from a critical trendline on the daily time frame, around the 1.1307 level.
Now that we have seen a strong bounce, watch out for a test of the 1.1330 support level and then more gains above 1.1400.
If the bounce from the trendline is genuine, then expect a breakout above 1.1500 very shortly.
See real-time quotes provided by our partner.
