- EUR/USD looks north, having defended key support for three days.
- Weekly indicator is bullish for first since April 2018.
EUR/USD could make a renewed push for a sustained break above 1.14 today, having defended the crucial 200-day moving average (MA) support for the last three days.
The repeated defense of the long-term average validates the bullish inverse head-and-shoulders breakout and the higher lows and higher highs pattern confirmed by last Friday’s close at 1.1369.
Supporting the bullish case is the 14-week relative strength index, which has turned bullish for the first time since April 2018.
Therefore, EUR/USD looks set to challenge the April 25 high of 1.1412. A daily close above that level would invalidate the bearish outside day and strengthen the case for a rise to 1.16.
The outlook would turn bearish if the spot finds acceptance below the 200-day MA, currently at 1.1351.
Daily chart
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Trend: Bullish
Pivot levels
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