EUR/USD Price Analysis: Range breakout seen on D1 favors move above 1.11

EUR/USD jumped 0.67% on Thursday, confirming a range breakout on the daily chart.
Momentum indicators are biased bullish and suggest scope for a move above 1.11.

Omkar Godbole FXStreet Contributor

EUR/USD closed well above 1.1019 on Thursday, confirming an upside breakout of the multi-week trading range of 1.0727 to 1.1019.

The breakout is backed by an above-50 or bullish reading on the 14-day relative strength index (RSI). The daily chart MACD histogram is printing higher bars above the zero line, a sign of the strengthening of the bullish momentum.

What's more, the ascending 5-day simple moving average (SMA) looks set to cross above the 200-day SMA. All in all, the odds appear stacked in favor of a convincing move above 1.11. At press time, the pair is trading at 1.1080, having hit a high of 1.1094 on Thursday.

The 4-hour chart RSI is reporting overbought conditions. So, a minor pullback may be seen before stronger gains.

With resistance at 1.1065 breached, the focus has now is on 1.1145/66 – the late March high and 61.8% retracement of the March collapse.

A close below 1.1019 is needed to invalidate the bullish setup.

Daily chart

Trend: Bullish

Technical levels

1. R3 120.51
2. R2 119.95
3. R1 119.6
PP 119.04
1. S1 118.69
2. S2 118.13
3. S3 117.78

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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