Since the beginning of the year the currency pair gained more than 4.5% and last week alone rose almost 1.0% but remains in an accumulation phase since late April.
Last week the EURUSD rallied with a wide range and closed near the high of the week, in addition managed to close above the previous week high, which suggests a strong bullish momentum.
The currency pair succeeded to close above the 50 week moving average that should provide a good dynamic support.
The stochastic is showing an extreme overbought market however is still displaying a strong bullish momentum.
Expecting an upward move to a Fibonacci extension at 1.1148 on a bounce from other Fibonacci extension at 1.0932 (scenario 1) however a break below the upper range of the weekly support at 1.0839 could drag the currency down to a key level at 1.0710 (scenario 2).