EUR/USD Price Analysis: Bounce stalls at trendline hurdle
|- EUR/USD is pressing into key trendline hurdle on the 4-hour chart.
- Indicators and daily candles are reporting early signs of bullish reversal.
EUR/USD is currently trading at 1.1029, having hit a high of 1.1040 in the overnight trade.
The 4-hour chart shows the bounce from the weekly low of 1.0992 has stalled at the trendline sloping downwards from Jan. 16 and Jan. 23 highs.
A break above the trendline hurdle would validate the bullish divergence of the relative strength index and open the doors to 1.1080.
The possibility cannot be ruled out, as the daily candlesticks are beginning to paint a bullish picture. The pair eked out 0.20% gains on Thursday and closed above Wednesday’s high of 1.1028, confirming the seller exhaustion at 1.10 signaled by consecutive long-tailed daily candles.
The outlook would turn bearish if the spot finds acceptance under 1.10.
Daily chart
Trend: Bullish
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.