The situation in the Forex market changed dramatically this week, and you can see that clearly through the EUR/USD's movements.
Last week ended with a massive drop, and the price closed at new long-term lows. This week was different. The price reversed and was aiming higher almost every single day.
This week’s rise created two compelling bullish patterns on the chart. The first one can be seen on the weekly chart and is a bullish engulfing pattern. The second one can be seen on the H4 and is a handsome Inverse Head and Shoulder pattern. The formation is active as we’ve already managed to break the neckline (blue).
The situation looks excellent, but there is one thing missing. The price is still below the mid-term down trendline(red). It may still scare some buyers. We'll get a full-fledged buy signal once the EUR/USD manages to break the red resistance.
The price bouncing off the trendline and dropping below the neckline is still possible but is currently less likely to happen. Our view on the EUR/USD is bullish.