EUR/USD technical analysis: Euro looks heavy on hourly chart, may revisit 1.12

• EUR/UD’s daily chart is reporting a bearish channel breakout or bear-to-bull trend change.  
• The pair, however, may fall back to 1.12 in the next few hours, as the hourly chart is flashing bearish indicator divergence.  

EUR/USD exited bearish channel earlier today, confirming a bearish-to-bullish trend change on the daily chart.

The breakout is backed by an above-50 reading on the relative strength index. Further, the moving average convergence divergence histogram has crossed above zero, adding credence to the bullish reversal signaled by falling channel breakout.

The pair, however, could fall back to 1.12 in the next few hours, as the hourly chart is reporting a bearish divergence of the RSI. The spot is currently trading at 1.1226, having hit a high of 1.1250 earlier today.

A strong bounce from sub-1.12 levels would reinforce the bearish channel breakout and open the doors to levels above 1.13.

Daily chart

4-hour chart

Trend: Bearish

Pivot points