The MACD histogram on the EUR / USD daily chart, an indicator used to identify trend changes and strength, has crossed above the zero line for the first time since December 22, indicating a bullish turn and validating Tuesday’s upward break of the trend line connecting the highs of Jan 6 and Jan 29.
Therefore, the odds appear to be increasing in favor of a convincing move above the resistance of the 50-day SMA, currently at 1.2151. That said, a quick move towards the 50-day SMA is needed, as the long upper wick attached to Wednesday’s Doji candle indicates bullish fatigue and possibilities for a further dip towards 1.2050.
At time of writing, the pair is moving slightly higher near 1.2125, having failed to remove resistance from the 50-day SMA the day before.
EUR / USD daily chart
EUR / USD technical levels
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