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  • EUR/USD’s daily chart indicator paints a bearish picture. 
  • The pair may revisit key support before resuming bull run from 1.16.

EUR/USD is currently trading in a sideways manner near 1.2243, having faced rejection above 1.23 in the previous two trading days.

The pair fell by over 0.6% on Thursday, confirming a bearish divergence of the 14-day Relative Strength Index. A bearish divergence occurs when an indicator forms lower highs, contradicting higher highs on the price chart, and often yields deeper pullbacks. 

The immediate support is seen at 1.2215 (Thursday’s low), which, if breached, would open the doors to 1.2129 (Dec. 21 low). On the higher side, 1.2310 (Wednesday’s high) is the level to beat for the bulls. 

Daily chart

Trend: Pullback likely

Technical levels