EUR/USD technical analysis: Snaps four-day winning run, but bull breakout still valid
|- EUR/USD's four-day winning streak ended on Tuesday.
- The inverse head-and-shoulders breakout is still valid.
- The bullish case would weaken below 1.1344.
EUR/USD fell 0.28 percent on Tuesday, engulfing Monday's high and low and ending the four-day winning streak.
The currency pair, however, defended the former resistance-turned-support of the 200-day moving average (MA), which was located at 1.1355 on Tuesday. Interestingly, the neckline of the inverse head-and-shoulders pattern breached was also seen at 1.1355 yesterday.
Put simply, the bullish outlook put forward by an upside break of the 200-day MA and the inverse head-and-shoulders breakout on Friday is still valid. Supporting the bullish case is the fact that the 5-day moving average has crossed above the 200-day MA for the first time since May 2018.
The case for a rally to 1.16 would further strengthen if the pair bolsters the bullish setup with a close above Tuesday's high of 1.1412.
The outlook, however, would turn bearish if the pair finds acceptance below 1.1344 – the low of Tuesday's bearish outside day candle. As of writing, the pair is trading at 1.1361.
Daily chart
Trend: Bullish
Pivot points
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