EUR/USD technical analysis: Peeps above 200-hour MA, bulls need a break above 1.1162
|- EUR/USD charted a bullish candlestick pattern last week and is currently sitting above the 200-hour MA.
- Daily chart indicators are flashing signs of a bullish reversal.
- The pair may break above 1.1162, violating lower highs setup.
EUR/USD is better bid in Asia, possibly on speculation that an all-out US-China trade war would force the US Federal Reserve (Fed) to cut rates by additional 50 to 75 basis points before the year-end.
The US central bank delivered a 25 basis point rate cut last week but refrained from signaling further easing.
The EUR/USD pair is currently trading above the 200-hour moving average (MA) of 1.1124.
The pair charted a bullish hammer on Thursday and closed above that hammer candle's high of 1.1096 on Friday, confirming a bullish reversal candlestick pattern.
That said, the pair is yet to invalidate the bearish lower highs pattern with a move above 1.1162 (July 31 high). That would confirm a bearish-to-bullish trend change.
A break above 1.1162 looks likely with the bullish divergence of the moving average convergence divergence histogram.
Daily chart
Trend: Bullish
Pivot points
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