EUR/USD closed above 1.3500 figure last week which suggests more upside this week. The reason for the bullish outlook in the short-term is a sharp rally from 1.3320 low which appears to be a third leg within a third, based on the personality of the move.

Recently a third leg stopped at 1.3565 so we suspect that current contra-trend movement is wave iv that could look for completion around the upper trendline of a base channel.

Keep in mind that the larger trend is up and that the uptrend could resume soon into wave v) of (iii) towards 1.3620. This outlook remains valid as long as 1.3384 level is not breached.

Forex Analysis by Gregor Horvat at ForexPros. com