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EUR/USD technical analysis: 200-day MA hurdle scaled for first since May 1, 2018

2019-06-24 09:10

  • EUR/USD confirmed bullish trend with a close above 200-day MA on Friday. 

  • The daily chart shows a bullish higher low, higher high pattern. 

  • Friday's close also confirmed an inverse head-and-shoulders breakout. 



The EUR/USD pair closed above the 200-day moving average (MA) on Friday – the first daily close above the long-term moving average in over 13 months – confirming a bullish breakout. After all, the 200-day MA is widely considered a barometer of the bull/bear market. 



Further, the pair closed well above the June 7 high of 1.1348 on Friday, confirming a bullish higher low, higher high pattern and an inverse head-and-shoulders breakout. 



As a result, the path of least resistance is now on the higher side and the pair could challenge the March 20 high of 1.1448 this week. A break higher would expose 1.1514 (Jan. 31 high). It is worth noting that the inverse head-and-shoulders breakout has opened the doors to 1.16 (target as per the measured move method). 



A close below 1.1348 would neutralize the immediate bullish outlook. As of writing, the pair is trading at 1.1381, the highest level since March 22.



Daily chart





Trend: Bullish



Pivot points





 


This article is published only for general use basic informatory purposes and should not be considered or depended on as a financial or investment advice. Investors should make sure that they understand the risks and seek independent financial advice at all times. CFDS ARE COMPLEX INSTRUMENTS AND COME WITH A HIGH RISK OF LOSING MONEY RAPIDLY DUE TO LEVERAGE.

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