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  • EUR/USD has breached a key falling trendline on the weekly chart.  
  • The 14-week RSI is also reporting a bullish bias.  
  • Resistance at 1.1250 could come into play this week.  

EUR/USD is looking north, having breached the resistance of the trendline (diagonal hurdle) falling from September 2018 and June 2019 highs.  

The pair closed last week with 0.96% gains at 1.1176, confirming an upside break of the trendline on a weekly closing basis. The breakout had remained elusive in the previous two weeks.  

Further, the last week’s green candle invalidated the preceding week’s bearish inside bar weekly candle. This kind of price action is often a telltale warning of a strong bullish move.  

The 5- and 10-week moving averages (MAs) have produced a bullish crossover and the 14-week relative strength index at 54.00 is signaling the strongest bullish bias since April 2018.

Put simply, the odds are stacked in favor of a rise to 1.1250 (Aug.3 high).  

A break below 1.1069 (last week’s low) would invalidate the bullish setup on the weekly chart.  

Weekly chart

Trend: Bullish

Technical levels