- EUR/USD trades flat in Asia after defense of 1.20 on Wednesday.
- Technical charts favor a minor bounce to the 5-day SMA.
EUR/USD trades mostly unchanged on the day near 1.2036 at press time.
The pair carved out a candle with a long-tail for the second straight day on Wednesday, signaling downtrend fatigue near the psychological support of 1.20.
That, along with a bullish divergence of the 4-hour chart Relative Strength Index (RSI), suggests scope for a bounce to the 5-day Simple Moving Average (SMA), currently at 1.2061.
Acceptance under 1.20 would revive the bearish view put forward by the head-and-shoulders breakdown confirmed earlier this week.
Daily chart
Trend: Bearish
Technical levels
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