EUR/USD bulls remain in play despite hawkish Powell.Bulls can target 1.0120/50 so long as 1.0000/0.9980 holds.
The euro was shaken up initially on the knee-jerk but has not been bent out of shape technically on the 4-hour charts.EUR/USD remains above a key support area of 1.0000. The following illustrates the upside bias so long as this support remains intact for days ahead with a focus on 1.0120 on a breach of 1.0080.
EUR/USD H4 charts
The bullish harmonic pattern leaves an upside bias on the charts so long as D holds around 0.9900. For the near term, for positive conviction, bulls will be more encouraged should the area between 1.0000/0.9980 hold, as per the W-formation’s support zone. The neckline of the pattern is a 50% mean reversion of the range between points C-D.
Zooming down, we can see there is resistance between the highs of the day and 1.0080. This is a high volume area that guards the target and 1.0145 higher up.
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