- EUR/USD’s daily chart shows an upside break of a descending trendline.
- Indicators look to have rolled over in favor of the bulls.
EUR/USD is trading in the red near 1.0940 at press time, having printed a two-week high of 1.0973 during Thursday’s American trading hours.
The pullback, however, may be reversed, as the daily chart is reporting bearish conditions. To start with, Thursday’s candle confirmed a convincing breakout above the trendline falling from March 27 and April 15 highs.
The 5- and 10-day averages are beginning to trend north, a sign the upward momentum is about to gather pace. Further, the 14-day relative strength index has crossed into bullish territory above 50 for the first time in four weeks.
The path of least resistance appears to be on the higher side. The immediate resistance is located at 1.10 (100-day MA) and 1.1034 (200-day MA). Meanwhile, on the lower side, Thursday’s low of 1.0833 is the level to beat for the bears.