EUR/USD rose further to 1.1994 last week, but struggled to break through 1.1988 resistance decisively. Initial bias is neutral this week for some consolidations first. Further rally will remain in favor as long as 1.1876 support holds. Sustained trading above 1.1988 resistance will affirm our bullish view that correction from 1.2348 has completed at 1.1703. Further rally would then be seen to 1.2242/2348 resistance zone. However, break of 1.1876 support will turn bias back to the downside for 38.2% retracement of 1.0635 to 1.2348 at 1.1694 instead.
In the bigger picture, rise from 1.0635 is seen as the third leg of the pattern from 1.0339 (2017 low). Further rally could be seen to cluster resistance at 1.2555 next, (38.2% retracement of 1.6039 to 1.0339 at 1.2516). This will remain the favored case as long as 1.1602 support holds. However, sustained break of 1.1602 will argue that whole rise from 1.10635 has completed. Deeper fall would be seen to 61.8% retracement of 1.0635 to 1.2348 at 1.1289.
In the long term picture, the case of long term bullish reversal continues to build up, with bullish convergence condition in monthly MACD, sustained trading above 55 month EMA and long trend falling trend line. Focus is now on 1.2555 cluster resistance (38.2% retracement of 1.6039 to 1.0339 at 1.2516 ). Decisive break there will confirm and target 61.8% retracement at 1.3862 and above.
