- The short-term trend has turned bullish on establishment above 1.0000.
- An upside break of the Descending Triangle strengthened the Eurozone bulls.
- After a tad longer period, the RSI (14) has shifted into the bullish range of 60.00-80.00.
The EUR/USD pair is on the verge of extending its gains as the asst is crossing Wednesday’s high at 1.0011. Precisely an establishment above the magical figure of 1.0000 is sufficient to strengthen the shared currency bulls. Earlier, the pair displayed a juggernaut rally after sensing a significant buying interest near the crucial support of 0.9880.
On an hourly scale, EUR/USD is scaling vigorously higher after a breakout of the Descending Triangle chart pattern. The downward-sloping trendline of the chart pattern is plotted from the August 31 high at 1.0079. While the horizontal support is marked from Monday’s low at 0.9878.
The major has crossed the 20-and 200-period Exponential Moving Averages (EMAs) at 0.9955 and 0.9965 respectively. It is worth noting that the asset is auctioning above the aforementioned EMAs while the 20-EMA is still below the giant one. This indicates that the shared currency bulls are extremely strong.
Also, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00 after an extended period, which favors an upside momentum.
A break above Thursday’s high at 1.0013 will drive the asset towards August 31 high at 1.0079, followed by August 16 low at 1.0123.
Alternatively, the shared currency bulls would lose their grip if the asset drops below August 26 low at 0.9947. If it happens then the major could decline further towards Monday’s low at 0.9878 and round-level support at 0.9800.
EUR/USD hourly chart