EUR/USD technical analysis: Eyes 38.2% Fib hurdle on pennant breakout

• EUR/USD's 15-minute chart shows a pennant breakout – a bullish continuation pattern. 
• The pair could see at least a 60-pip rise during the day ahead.

With short duration charts reporting a bullish continuation pattern, EUR/USD looks set to extend Tuesday’s 0.32% rally to 1.0967 – 38.2% Fib Retracement of 1.1110/1.0879. 

EUR/USD’s 15-minute chart shows a pennant breakout. Pennants are continuation patterns, which accelerate the preceding bullish move. 

The pennant breakout on the 15-minute chart indicates resumption of the rally from Tuesday’s low near 1.0880 and has created room for at least a 60-pip move to the higher side. As of writing, EUR/USD is trading at 1.0940. 

Supporting the bullish case is the above-50 reading on the hourly chart relative strength index. 

The bullish case would weaken if the spot falls below 1.0928. 

15-min chart

Hourly chart

Trend: Bullish

Technical levels