EUR/USD may revisit Friday’s high above 1.1320 over the next few hours, having witnessed an ascending triangle breakout – a bullish setup – on the 15-minute chart earlier today.
Supporting that bullish case is the range breakout on the 15-minute chart relative strength index and the fact that the spot has found acceptance above the 50-day moving average (MA), currently at 1.1298.
That said, the area just above 1.1320 has proved a tough nut to crack since Friday. Further, the spot created a small doji candle with long upper wick yesterday, signaling indecision in the market. A close above Friday’s high of 1.1324 is needed to invalidate that doji candle and open the doors to further gains towards 1.14.
A close below 1.298 (Doji low) would confirm an end of the bounce from the recent low of 1.1184 and shift risk in favor of a drop to 1.1234-1.12. As of writing, the spot is trading at 1.1306.
Trend: Intraday bullish