EUR/USD Price Analysis: Inverse head-and-shoulders breakout backs further upside

• EUR/USD bulls extend control for the third straight day.
• Inverses head-and-shoulders in play on 1H chart, eyes on 1.1900.
• Bullish crossover spotted but RSI well above the midline.

EUR/USD remains on the front foot near 1.1850 starting out a fresh week, extending its winning streak into the third straight day on Monday.

Vaccine optimism appears to offset the surging coronavirus cases-led concerns, collaborating with the risk-on mood. Meanwhile the agreement on the Regional Comprehensive Economic Partnership, or RCEP, free trade deal also adds to the upbeat market sentiment.

From a technical perspective, the spot has confirmed an inverse head-and-shoulders breakout on the hourly sticks, which calls for a test of the 1.1900 level.

The bullish crossover, with the 50-hourly moving average (HMA) cutting the 100-HMA from below, also adds credence to the bullish move.

Meanwhile, the Relative Strength Index (RSI) has retraced from the overbought territory, still holding well above the midline, suggesting that there is more room to the upside.

Ahead of the 1.1900 level, the bulls are likely to face stiff resistance at 1.1860, November 5 high.

Alternatively, an immediate cushion is seen at the bullish 21-HMA at 1.1826, below which the 1.1808 level will be put to test.

The confluence of the 200-HMA and pattern neckline at 1.1800 is the level to beat for the bears.

EUR/USD: Hourly chart

EUR/USD: Additional levels