EUR/USD Looking for Triangle and Momentum Breakout

After bouncing up from 1.32, instead of rallying to 1.33-1.3320 resistance area, the EUR/USD traded into a congestion triangle seen in the 1H chart. It should be noted that USD has been gaining across the board against the GBP, AUD, NZD, CAD, JPY, but not against the EUR, and CHF. EUR/USD’s momentum can be described as neutral at the moment, as the 1H RSI reading is stuck between 60 and 40, and is wavering around 50. From congestion comes breakout and that is the next stage the market will be monitoring for as the 2/22 US session continues.

A return of the RSI will be needed to confirm a breakout to the upside and a subsequent attack at the 1.30-1.3020 area. The downside outlook is against the recent trend, but an RSI reading breaking below 40 would suggest loss of bullish momentum and open up a bearish correction scenario. Price should break below 1.32 in this outlook, in which case a return to 1.31 could be an anticipated in the very short-term.