The EURUSD has gained 240 pips this week.
The pair is also in the process of carving a bullish engulfing week.
It will be especially bullish if the euro can close today above last week’s high at 1.1859.
Such a close would also confirm the breakout from a trend line that extends from the year-to-date high.
But all of this EURUSD strength shouldn’t surprise anyone, at least those who frequent this site.
I’ve been relatively bullish on the euro for months.
One look at the monthly time frame explains why.
The EURUSD broke out from this symmetrical triangle in July, which was the same month the USDJPY broke down.
That’s no coincidence.
I’ve said for weeks now that as long as EURUSD is above 1.1450, I have to stay cautiously bullish.
As for the daily chart, if today can close above 1.1825, we’ll have a bullish breakout to work with next week.
That said, I’d prefer to see a close above 1.1880.
Key resistance above that comes in near 1.1950/70.
And as I’ve stated a few times, my target for EURUSD remains 1.2500 into next year.