Fundamental & Technical Analysis
The EUR/USD pair broke out to the upside last week, it broke above the top of the shooting star from the previous week. Even though it pulled back a bit it was able to close above the 1.20 level. Therefore the traders would most likely buy on dips to gain value. The market is a bit overbought, but the interest rate expectations out of the Federal Reserve are diminishing at the moment, and that should continue to favour the EUR. Ultimately though, we are overbought, so sooner or later we need to see some type of pullback.
Trading idea for the coming week
What I suggest is to wait for the pair to either pull back to test one of those up trend lines or until it breaks above the weekly high of 1.20917. Buying is the only thing favourable at the moment.
EURUSD has hit that trendline, looks like it is a good support, I think it will move up now.