- EUR/USD's hourly chart shows a bearish divergence of a key indicator.
- A close above 1.1097 is needed to confirm a breakout on the daily chart.
EUR/USD is currently trading at 1.1079, representing marginal losses on the day, having clocked a high of 1.1094 in the overnight trade.
The pullback could be extended further to support at 1.1060 as the hourly chart is reporting a bearish divergence of the relative strength index (RSI)
The 4-hour chart RSI is also rolling over from the overbought levels, signaling scope for a pullback. The indicator, however, is reporting bullish conditions with an above-50 print on the daily chart.
That said, a close above the Nov. 21 high of 1.1097 is needed to confirm a double bottom breakout on the daily chart and open the doors for 1.12.
Hourly chart
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Trend: Pullback likely
Technical levels
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