7 Jul 2020
EUR/USD Price Analysis: Uptrend from May lows looks to have resumed
- EUR/USD's 4-hour chart shows descending triangle breakout.
- The rally from lows near 1.0750 seen in May has resumed.
EUR/USD jumped 0.58% on Monday, confirming a descending triangle breakout on the 4-hour chart.
The pattern indicates that the rally from lows near 1.0750 observed in May has resumed and the pair could soon challenge the June 10 high of 1.1422.
Backing the bullish case is the 14-day relative strength index’s upside break of the descending trendline and the golden crossover of the 50- and 200-day simple moving averages confirmed last month.
On the way higher, the pair may face some resistance at 1.1349 – the lower high created on June 23.
On the downside, the June 19 low of 1.1168 is the level to beat for the sellers.
4-hour chart
Trend: Bullish