EUR/USD is threatening a trend break - upwards.

There's debate about where the current down trend starts. Some traders will argue it begins at the January peak (blue line). However the April low is above the March low, breaching the technical definition of a down trend, meaning others will draw the trend line from the March peak (black line). This illustrates that there is art as well as science in technical analysis.

Depending on viewpoint, the down trend is either broken, or potentially about to break. A positive outlook is supported by the MACD. It diverges from the lows in each month since February, refusing to make corresponding lower lows. This bullish divergence, combined with a cross below the zero line and (possible) breach of the trend line make a bullish case for EUR/USD.

Some may see this as in line with fundamentals. The introduction of higher tariffs on China goods by the US is likely to slow both major economies. While growth in Europe is hardly stellar, its steady state may see the EUR outperform the USD. A move over 1.1300 would flesh the emerging technical buy picture.

CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.