The Euro inched higher on Tuesday, following a strong bullish day on Monday, and it was seen trading at around 1.1750 during the US session.
There is an obvious and impressive falling wedge pattern forming on the daily chart. That usually leads to a bullish reversal. In this case, the pair needs to climb above 1.18 to confirm this formation, which is only 50 pips away.
The immediate target of the formation is at 1.1950, where May's lows are located. However, the full target is expected to be in the 1.21 region, thus, erasing all the losses since June.
If the EURUSD pair rises toward 1.21, it could provide a large boost to commodities and equities as they usually rise in tandem with the EURUSD pair.
Alternatively, if the euro starts to decline again, the support is at 1.17 before the current cycle lows near 1.1660. There is also a large bullish divergence between the MACD indicator and the price, supporting the bullish idea.