EURUSD remains inside an upward sloping wedge and my short-term view is bullish as I expect EURUSD to move towards 1.3940-1.40 over the coming weeks. In the 4 hour chart below we see that EURUSD is breaking above the Ichimoku cloud after bouncing off the 50% Fibonacci retracement support. Important short-term support is found at 1.3780. As long as this support is held, I believe we should expect EURUSD to move higher after confirming break out of the cloud resistance at 1.3855.
The daily chart below shows the upward sloping wedge we are currently in. The Ichimoku cloud is providing support between 1.37-1.38 and I expect this pair to move towards the upper wedge boundaries near the blue box I have placed near 1.3930-1.3940. If recent low at 1.3780 fails, EURUSD has 1.3760 as support where the 61.8% Fibonacci retracement is.
A break below 1.3672 low will challenge the lower wedge supportive boundaries. Below current trading levels EURUSD has very strong support. I believe it is more probable to see an upward move towards 1.3940 rather than a sell off below 1.37. Profit taking near 1.3930-1.3950 is my strategy if this move unfolds as expected.
As always, thank you for taking the time to catch up on my thinking.