Search ForexCrunch
  • EUR/USD looks north with the daily chart reporting a triangle breakout. 
  • The daily chart MACD is about to turn bullish. 
  • The pair eyes a break above the lower high of 11349 created on June 23.

EUR/USD bounced 0.5% on Wednesday, reversing the decline seen on Tuesday and reinforcing the ascending triangle breakout confirmed by Monday’s close at 1.1309. 

The breakout is now backed by an above-50 or bullish reading on the 14-day relative strength index and ascending 5- and 10-day simple moving averages (SMAs). 

In addition, the MACD histogram, an indicator used to identify trend strength and trend changes, is about to cross into bullish territory above zero. 

As such, the pair could soon break above the immediate resistance at $1.1349 (June 23 high). That would invalidate the lower high created on June 23 and bolster the bullish technical setup, opening the doors for a re-test of the June 10 high of 1.1422. 

On the downside, the June 19 low of 1.1168 is the level to beat for the sellers. At press time, the pair is trading around 1.1340, representing a 0.10% gain on the day, The pair printed a three-week high of 1.1352 on Wednesday. 

Daily chart

Trend: Bullish

Technical levels