Bank of America Merrill FX Technical Strategy Research discusses EUR/USD outlook and notes that the surge through 1.2092 is an early sign of a bullish breakout which should be confirmed with a close above 1.21.

"A closing and sustained breakout through the 1.2092-1.21 resistance area extends the uptrend from the 2016 lows and says the 4Q17 correction was enough to lead to another wave higher. It would validate the 12/28 bullish "holiday" trend line break which is somewhat suspicious. It would also confirm the bullish weekly MACD," BofAML argues.

Measured move targets for such a breakout, according to BofAML, are the 38.2% at 1.2286, the 50% at 1.2346, and the 61.8% at 1.2406.

Source: Bank of America Merrill Lynch Rates and Currencies ResearchOriginal Article