EUR/USD Price Analysis: Rise to 5-day SMA likely after consecutive long-tailed daily candles

• EUR/USD trades flat in Asia after defense of 1.20 on Wednesday. 
• Technical charts favor a minor bounce to the 5-day SMA.

EUR/USD trades mostly unchanged on the day near 1.2036 at press time. 

The pair carved out a candle with a long-tail for the second straight day on Wednesday, signaling downtrend fatigue near the psychological support of 1.20. 

That, along with a bullish divergence of the 4-hour chart Relative Strength Index (RSI), suggests scope for a bounce to the 5-day Simple Moving Average (SMA), currently at 1.2061. 

Acceptance under 1.20 would revive the bearish view put forward by the head-and-shoulders breakdown confirmed earlier this week. 

Daily chart

Trend: Bearish

Technical levels