EUR/USD spot rate – possible further upside movement
From the FX pair EURUSD daily chart there is a bearish movement (correction) within a bullish reversal double-bottom pattern. A double bottom formation was formed and completed upwards upon upside penetration (closing prices) of point B marked above on the chart. With this double bottom formation we have observed a failure swing completed upwards (a-b-c pattern).
Using Failure Swing bottom theory we expect to witness an uptrend in the following months.
Point C on the chart shows that the price failed to go beyond the previous bottom level at point A. Instead, we have a correction towards point B (last top).
Our target is set by the vertical distance between point A and point B and by the time it breaks point B level, with a valid green candlestick, suggested long positions are initiated. We see a verification of our first target at the point 1.1180. Our next targets are focused on the values of 1.1518 and 1.1841. The above set targets are also confirmed by the Fibonacci Retracement levels at 50% and 61.8%.
The above analysis for further upward movement will be cancelled if at any case we see a daily close below point C at approximately the 1.0600 price level.