EUR/USD Price Analysis: Bulls pierce 2020 descending trendline

EUR/USD's two-month bearish trend ended with Thursday's sharp gain.
Thursday's bullish marubozu candle suggests the path of least resistance is to the higher side.

Omkar Godbole FXStreet Contributor

EUR/USD jumped by over 1% on Thursday, violating the descending trendline falling from Dec. 31 and Feb. 3 highs.

The upside break of the trendline indicates the bearish trend from the Dec. 31 high of 1.1240 has ended and the bulls have regained control.

More importantly, the EUR breached the falling trendline with a bullish marubozu candle, which occurs when the bulls control the price action from the opening bell to the closing bell. It comprises a big green body and little or no shadows and is considered an indicator of strong bullish sentiment.

The 14-day relative strength index has also crossed into the bullish territory above 50. The pair, therefore, could challenge the 50-day average resistance at 1.1026, possibly after a minor pullback, as the hourly chart RSI is reporting overbought conditions.

A bearish reversal would be confirmed if the spot finds acceptance under Thursday's low of 1.0876.

Daily chart

Trend: Bullish

Technical levels

EUR/USD

Overview
Today last price	1.0997
Today Daily Change	0.0004
Today Daily Change %	0.04
Today daily open	1.0993

Trends
Daily SMA20	1.091
Daily SMA50	1.1031
Daily SMA100	1.1056
Daily SMA200	1.11

Levels
Previous Daily High	1.1006
Previous Daily Low	1.0877
Previous Weekly High	1.0864
Previous Weekly Low	1.0778
Previous Monthly High	1.1225
Previous Monthly Low	1.0992
Daily Fibonacci 38.2%	1.0957
Daily Fibonacci 61.8%	1.0926
Daily Pivot Point S1	1.0911
Daily Pivot Point S2	1.083
Daily Pivot Point S3	1.0783
Daily Pivot Point R1	1.104
Daily Pivot Point R2	1.1088
Daily Pivot Point R3	1.1169

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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