EURUSD: 3 reasons to be bullish; possible move towards 1.2725

EURUSD –Last week’s strong downside rejection saw EURUSD post a bullish outside candle (weekly), often a sign of trend reversal (or at least a decent correction). Intraday chart is showing a bullish 5 wave count higher to just above 1.2381, 261.8% extension level. We also have the right shoulder of a bullish reverse Head and Shoulders formation coming into at 1.2261 (our first strong support).

I think you get the hint! We have turned bullish in EURUSD and will look for a move towards 1.2725 (measured move) on a break of last week’s high. Looking for bullish signals close to 1.2261 but be prepared for a stop under 1.2176 (61.8% pullback).

The profit targets will be:  a break of 1.2410 (confirming the call) then 1.2483 and towards 1.2725.

Support levels are: 1.2261, then 1.2222 and 1.2175.