EUR/USD technical analysis: Peeps above 200-hour MA, bulls need a break above 1.1162

EUR/USD charted a bullish candlestick pattern last week and is currently sitting above the 200-hour MA.
Daily chart indicators are flashing signs of a bullish reversal.
The pair may break above 1.1162, violating lower highs setup.

Omkar Godbole FXStreet Contributor

EUR/USD is better bid in Asia, possibly on speculation that an all-out US-China trade war would force the US Federal Reserve (Fed) to cut rates by additional 50 to 75 basis points before the year-end.

The US central bank delivered a 25 basis point rate cut last week but refrained from signaling further easing.

The EUR/USD pair is currently trading above the 200-hour moving average (MA) of 1.1124.

The pair charted a bullish hammer on Thursday and closed above that hammer candle's high of 1.1096 on Friday, confirming a bullish reversal candlestick pattern.

That said, the pair is yet to invalidate the bearish lower highs pattern with a move above 1.1162 (July 31 high). That would confirm a bearish-to-bullish trend change.

A break above 1.1162 looks likely with the bullish divergence of the moving average convergence divergence histogram.

Daily chart

Trend: Bullish

Pivot points

1. R3 1.1175
2. R2 1.1146
3. R1 1.1127
PP 1.1099
1. S1 1.108
2. S2 1.1051
3. S3 1.1032

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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