EUR/USD Outlook: Bulls Probe Through 5-Day Congestion Ceiling

The Euro is attacking the upper boundary of five-day congestion (1.2081/1.2150) in early Tuesday’s trading.

Extended near-term sideways action is capped by Fibo 50% retracement of 1.2349/1.1952 pullback and rising 55DMA, with eventual break here to signal continuation of recovery leg from 1.1952 (Feb 5 correction low).

Fresh bullish momentum on daily chart supports the action which needs final close above 55DMA (1.2145) to generate fresh signal for extension towards initial targets at 1.2189/97 (Jan 22 high / Fibo 61.8%) which guard more significant top of thick daily cloud (1.2222).

Res: 1.2189, 1.2197, 1.2222, 1.2255.
Sup: 1.2145, 1.2127, 1.2103, 1.2085.