- EUR/USD’s daily chart shows a bullish outside day candlestick pattern.
- Key indicators are also flashing bullish signals, adding credence to the candlestick arrangement.
EUR/USD is currently trading at 1.1065, having hit a low of 1.1055 a few minutes before press time.
On Thursday, the currency pair hit a high and low of 1.1087 and 1.0927, respectively, before ending the day with gains at 1.10635. The price action engulfed the highs and lows set in the preceding six trading days.
Essentially, the pair created a big bullish outside day pattern on the daily candlestick chart. That candle has appeared at the bottom of an established downtrend and indicates an impending trend change.
The moving average convergence divergence histogram, a widely-tracked trend-following indicator, is gaining altitude above the zero line, indicating a strengthening of bullish momentum.
Further, the 5- and 10-day moving averages (MA) are reporting a bullish crossover.
Put simply, the path of least resistance is to the higher side and the pair could challenge and possibly beak above 1.11 during the day ahead.
On the downside, 1.0927 (Thursday’s low) is the level to beat for the bears.