EUR/USD Price Analysis: Has room to rise towards 1.1715 amid bullish technical set up

• EUR/USD is breaking higher from a three-week-old descending triangle on the daily chart.
• Tuesday’s close is critical to unleashing additional upside towards the 50-DMA at 1.1715.
• Daily RSI pierces through the midline, recaptures 50.00 and backs more gains.

EUR/USD is consolidating around 1.1650, having staged an impressive bounce from the daily lows of 1.1610, as the pullback in the US dollar amid the risk-on mood underpinned the pair.

The major extends its recovery from 15-month lows of 1.1524 into the fifth straight day on Tuesday, as the bulls remain in complete control.

EUR/USD’s daily chart shows that the price has broken higher from a three-week-old descending triangle formation, although the bulls need a daily closing above the falling trendline resistance at 1.1602 to confirm an upside breakout from the pattern.

The 14-day Relative Strength Index (RSI) has pierced through the midline, now back onto the positive territory, suggesting that there is more room to the upside.

The triangle confirmation will trigger a fresh advance towards the downward-sloping 50-Daily Moving Average (DMA) at 1.1715.

Ahead of that the 1.1700 round number could be a tough nut to crack for the EUR bulls.

EUR/USD: Daily chart

Meanwhile, any retracement will meet the 21-DMA support at 1.1622, below which the triangle resistance now support at 1.1602 would be tested once again.

Further south, Monday’s low of 1.1571 could be threatened if the selling pressure intensifies.

EUR/USD: Additional levels to consider