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  • EUR/USD eyes 1.21 after Tuesday’s bullish marubozu candle. 
  • Momentum studies are also aligned in favor of the bulls.

EUR/USD closed well above 1.20 on Tuesday on a broad-based dollar sell-off. That’s the first daily close above the psychological hurdle since April 30, 2018. 

The breakout above 1.20 looks sustainable, as Tuesday’s big green marubozu candle shows sentiment is quite bullish. The 5- and 10-day Simple Moving Averages are trending north, indicating the path of least resistance is to the higher side. 

As such, the psychological hurdle of 1.21 could soon come into play. At press time, the pair is trading largely unchanged on the day near 1.2075. 

A close above the 10-day SMA would abort the bullish view. 

Daily chart

Trend: Bullish

Technical levels