- EUR / USD daily RSI chart plots a bullish reversal pattern.
- The pair have yet to cross the 50-day SMA hurdle.
EUR / USD’s 14-day Relative Strength Index (RSI) created an inverted head-and-shoulders bullish reversal pattern.
A break in the RSI would open the doors for a retest of the January high of 1.2349. The pair is currently trading near 1.2128, which represents a gain of 0.11% on the day.
The pair has been limited to a narrow range defined by the 50-day Simple Moving Average (SMA) and 100-day SMA since February. 4.
A close above the 50-day SMA, currently at 1.2150, would shift attention towards 1.2349. Meanwhile, a close below the 100-day SMA, currently at 1.20, would confirm a bearish reversal. The long-term SMA held firm in early November, after which the pair posted a big rally from 1.17 to over 1.23.
Orient yourself: Bullish