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  • EUR/USD trades above the 50-day average at 1.0964.
  • Tuesday’s marubozu candle suggests the path of least resistance is to the higher side. 

EUR/USD is sidelined near 1.0980 at press time, having found acceptance above a key average hurdle during the overnight trade. 

The pair jumped 0.67% on Tuesday and formed a green marubozu candle, which comprises a strong body and little or no wicks. The marubozu candle, a sign of strong bullish sentiment, also marked a daily close above the 50-day average and indicates scope for a rise to the 100-day average at 1.1030. 

The bullish candle is also backed by an above-50 reading on the 14-day relative strength index. 

The bullish bias would be invalidated if the spot drops below Tuesday’s low of 1.0901. 

Daily chart

Trend: Bullish

Technical levels