EUR/USD technical analysis: Bearish lower highs invalidated, eyes 200-day MA

EUR/USD has violated the bearish lower highs pattern.
The MA studies on the daily chart are biased bullish.
Friday’s close also validated Thursday’s bullish outside reversal candle.

Omkar Godbole FXStreet Contributor

EUR/USD closed above 1.1324 (April 15 high) on Friday, invalidating the bearish lower highs pattern, which had been in place since Jan. 10.

Friday’s close at 1.1332 also marked a strong follow-through to the bullish outside day candle created at on the previous day.

The daily chart also shows a double bottom breakout and descending triangle breakout.

Further, the 5- and 10-day moving averages (MAs) are trending north, indicating a bullish setup. Also, the 5- and 100-day MAs and the 10- and 50-day MA have produced a bullish crossover.

With the short-term technical profile looking bullish, the pair looks set to test the 20o-day MA hurdle this week. As of writing, the crucial average is located at 1.1367. The pair is currently trading at 1.1318, having hit a high of 1.1331.

Daily chart

Trend: Bullish

Pivot levels

1. R3 1.1469
2. R2 1.1409
3. R1 1.1372
PP 1.1311
1. S1 1.1274
2. S2 1.1214
3. S3 1.1177

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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