- EUR / USD is breaking up a three-week-old descending triangle on the daily chart.
- Tuesday’s close is critical to unleash a further rally towards the 50-day SMA at 1.1715.
- The daily RSI breaks through the midline, regains the 50.00 level and supports further gains.
EUR / USD is consolidating around 1.1650, having staged an impressive rebound from daily lows of 1.1610, as the US dollar’s pullback amid risk appetite has benefited the pair.
The pair extends its rally from 15-month lows at 1.1524 for the fifth day in a row on Tuesday, as the bulls remain in full control.
The EUR / USD daily chart shows that the price has broken to the upside a three-week-old descending triangle pattern, although the bulls need a daily close above the resistance at the downtrend line at 1.1602 to confirm the breakout. upward of the pattern.
The 14-day RSI has broken above the midline, now back into the positive territory, suggesting that there is more room to the upside.
Confirmation of the triangle breakout will trigger a further advance towards the downtrendly sloping 50-day moving average at 1.1715.
Before that, the round 1.1700 level could be a tough bone to break for the EUR / USD bulls.
EUR / USD daily chart
Meanwhile, any pullback could find support at the 21-day SMA at 1.1622, below which the resistance of the triangle, now turned into support at 1.1602, would be tested once again.
Lower down, Monday’s low of 1.1571 could be threatened if selling pressure intensifies.
EUR / USD additional levels
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