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  • EUR/USD’s 4-hour chart shows signs of bear fatigue. 
  • A minor bounce to the 5-day SMA looks likely.

EUR/USD is currently trading at 1.1645, having printed a low of 1.1630 early Tuesday. 

The pair could see bigger gains during the day ahead, as the 4-hour chart relative strength index has carved out a higher low or bullish divergence, a sign of seller fatigue. Besides, the indicator has breached a descending trendline, indicating an end of the sell-off from Oct. 21 highs near 1.1880.

Further, the 4-hour chart MACD histogram has crossed above zero, indicating a bullish reversal. 

The descending 5-day simple moving average, currently at 1.1670 could be put to test. On the downside, the overnight low of 1.1622 is the level to beat for the sellers. 

4-hour chart

Trend: Bounce likely

Technical levels