EUR/USD Technical Analysis: 1.1402 is the level to beat for the bulls

The EUR/USD fell close to 90 pips on Friday, neutralizing the bullish view put forward by the outside-day reversal. That bearish move has established Thursday's high of 1.1402 as the level to beat for the bulls, that is, the rally from the Nov. 28 low of 1.1267 is seen resuming above 1.1402.

Hourly chart

• As seen above, the relative strength index (RSI) has breached the falling trendline. Therefore, the spot could soon find acceptance above the 200-hour exponential moving average (EMA) of 1.1354.

Daily chart

• Over on the daily chart, the pair has established a higher low of 1.1267, validating the falling wedge breakout, witnessed on Nov. 16. The bullish setup would gain credence above 1.1402, in which case, the pair may test the inverse head-and-shoulders neckline of 1.1468.
• The bears, however, would gain strength if the pair violates the higher low pattern with a move below 1.1267 (Nov. 28 low).

Trend: Cautiously bullish