EUR/USD technical analysis: Scaling key descending trendline in Asia

EUR/USD is currently trading above the key falling trendline, which had reversed gains on May 1.
A close above 1.1218 would confirm trendline breakout and open the doors to levels above 1.13.

Omkar Godbole FXStreet Contributor

EUR/USD has crossed the resistance of the trendline connecting March 20 and April 17 highs in Asia.

As of writing, the pair is trading at 1.1226 - just above the trendline hurdle of 1.1218.

That falling trendline had reversed rally on May 1. As a result, a break higher, if confirmed with a daily close above 1.1218, could invite strong buying pressure, yielding a retest of April highs above 1.1320. That looks likely as the 14-day relative strength index (RSI) is now hovering just above 50 with the 5- and 10-day moving averages (MAs) beginning to curl upwards.

The rise to 1.1320, however, may remain elusive if the 50-day moving average, currently at 1.1251, proves a tough nut to crack and ends up pushing the spot below the previous day's low of 1.1173.

Daily chart

Trend: Neutral

Pivot points

1. R3 1.1332
2. R2 1.1292
3. R1 1.1254
PP 1.1213
1. S1 1.1175
2. S2 1.1135
3. S3 1.1097

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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