EUR/USD Technical Analysis: 1.1630 Mission accomplished - Knee-jerk reaction or EUR/USD bulls really mean it?

• EUR/USD bulls are putting the main bear trend to the test once more time as they broke through 1.1600 to reach the 1.1630 key level and target. EUR/USD mimicked GBP/USD which gained 150 pips after it was reported that the UK and Germany are to drop key Brexit demands. EUR/USD bears hope this is just a knee-jerk reaction which will lead to quick profit-taking. However, the structure of the market remains constructive for EUR/USD bulls above 1.1530 key level.
• EUR/USD is currently breaking out to the upside from the bear channel trading above its 100 and 200-period simple moving average (SMA) on the 4-hour chart. The 50 SMA crossed above the 100 and 200 SMA which is bullish. Additionally, the August rally is the strongest move since June 2018 and the current leg down since August 28 can be seen asa corrective 50% Fibonacci retracement of the August rally.
• All-in-all EUR/USD remains constructive while trading above 1.1530 August 23 swing low and can hit 1.1700 as next target. A bearish breakout below the level would invalidate the bullish bias. 

EUR/USD 4-hour chart

Spot rate:             1.1618
Relative change:   0.30%  
High:                    1.1640
Low:                     1.1542

Main trend:                    Bearish
Short-term trend:           Bullish above 1.1530

Resistance 1:   1.1630 August 8 high key level
Resistance 2:   1.1654 August 27 high
Resistance 3:   1.1700 figure

Support 1:   1.1600 figure
Support 2:   1.1572 July 19 low
Support 3:   1.1542 supply/demand level
Support 4:   1.1530 August 23 swing low
Support 5:   1.1508 June 8 low