|

EUR/USD technical analysis: Bearish lower highs invalidated, eyes 200-day MA

  • EUR/USD has violated the bearish lower highs pattern. 
  • The MA studies on the daily chart are biased bullish. 
  • Friday’s close also validated Thursday’s bullish outside reversal candle. 

EUR/USD closed above 1.1324 (April 15 high) on Friday, invalidating the bearish lower highs pattern, which had been in place since Jan. 10. 

Friday’s close at 1.1332 also marked a strong follow-through to the bullish outside day candle created at on the previous day. 

The daily chart also shows a double bottom breakout and descending triangle breakout. 

Further, the 5- and 10-day moving averages (MAs) are trending north, indicating a bullish setup. Also, the 5- and 100-day MAs and the 10- and 50-day MA have produced a bullish crossover. 

With the short-term technical profile looking bullish, the pair looks set to test the 20o-day MA hurdle this week. As of writing, the crucial average is located at 1.1367. The pair is currently trading at 1.1318, having hit a high of 1.1331. 

Daily chart

Trend: Bullish

Pivot levels

    1. R3 1.1469
    2. R2 1.1409
    3. R1 1.1372
  1. PP 1.1311
    1. S1 1.1274
    2. S2 1.1214
    3. S3 1.1177

Author

Omkar Godbole

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

More from Omkar Godbole
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD flatlines below 1.1800 ahead of Fed Minutes

EUR/USD struggles to find direction and continues to move sideways below 1.1800 for the second consecutive day on Tuesday as markets remain in holiday mood. Later in the American session, the Federal Reserve will publish the minutes of the December policy meeting.

GBP/USD retreats to 1.3500 area following earlier climb

GBP/USD loses its traction and trades flat on the day near 1.3500 after rising to the 1.3530 area early Tuesday. Trading conditions remain thin ahead of the New Year holiday, limiting the pair's volatility. The Fed will publish December meeting minutes in the late American session.

Gold rebounds toward $4,400 following sharp correction

Gold gathers recovery momentum and advances toward $4,400 on Tuesday after losing more than 4% on Monday. Increased margin requirements on gold and silver futures by the Chicago Mercantile Exchange Group, one of the world’s largest trading floors for commodities, prompted widespread profit-taking and portfolio rebalancing.

Tron steadies as Justin Sun invests $18 million in Tron Inc.

Tron (TRX) trades above $0.2800 at press time on Monday, hovering below the 50-day Exponential Moving Average (EMA) at $0.2859.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).