Bulls are moving in from the foundations of a solid bullish structure

  • EUR/USD bulls are taking charge in a slow start in Tokyo.
  • The US dollar is on the backfoot and the technical structure points higher for the euro.

EUR/USD is attempting to move higher in a risk-on start in Tokyo as the US dollar struggles to pick up demand on Tuesday. The pair is consolidating in a 4-hour 100 pip bow between 1.0400 and 1.0500 which has been established in the first week of the new month while the price carves out a daily triple bottom. The following illustrates the market structure across the time frames and arrives at a short-term bias to the upside with eyes on 1.0500.

EUR/USD H1 chart

From an hourly perspective, the price is testing the neckline of the bullish W-formation. If the bulls commit here, then there will be prospects of a higher move within the sideways channel with a focus on 1.0500.

EUR/USD daily chart

The daily chart shows the price has the potential to move higher from the foundations of a triple bottom. The M-formation is a compelling feature of this time frame also which is a reversion pattern, at least until the neckline.

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