The EURUSD is setting up a bullish pennant formation.

The EURUSD is quietly consolidating above the 200dma as price action continues to compress into a pennant. As long as we stay above the 1.1230-50 level the risk of further upside is high. The 200dma is also providing continued support after the pair rallied sharply out of a year long descending wedge.

Upside target if the pennant completes in the coming weeks is above the 61.8% retracement which resides at 1.1546.

EURUSD Bullish Pennant

Blake Morrow