EUR/USD potential 400 to 500 pips bullish push

Looking at the monthly timeframe (TF) the EUR/USD pair has broken the downwards trendline. We had a pullback to retest the backside of this line and continued the upward push. We are currently at a major support/ resistance zone with strong bullish momentum. On the daily TF I spotted a double bottom and divergence on the RSI, but I am waiting for confirmation that the buyers are going to remain in control and continue to push price up breaking this major resistance area and remain within the buy zone (above the red line). Once resistance is broken, I will wait for a retest and buy lows on the 4H TF towards the next daily high.

EURUSD

Kommentar:

It looks EUR/USD could potentially begin to reverse now that we reached the height of 1.23391, We had a Fibonacci target reached, and what looks like a head and shoulders pattern forming on the daily TF. I am looking for a break below previous resistance zone which is also the neckline of the shoulders that would then lead us to lower lows towards the bottom blue support. The red line represents historical monthly reversal points, see analysis: