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EUR/USD: "Engulfing" pattern pushing the price higher

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Let's have a look at the Daily chart, where the pair is moving sideways. There's a bearish 'Harami' pattern, which has been formed on the 89 Moving Average. Also, there're several pullbacks from the lower 'Window', which has acted as support many times before.

Despite that both 3 Line Break Chart and Heiken-Ashi Indicator are bearish, we should focus on the last bullish 'Engulfing' pattern, which formed on the 'Window'. Therefore, the pair is likely going to reach the 55 Moving Average in the coming days. The subsequent pullback from this line could be a departure point for a decline in the direction of the previously tested support at 1.1210.

The material has been provided by InstaForex Company - www.instaforex.com