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