EUR/USD Price Analysis: Trapped in a 40-pip range

EUR/USD is being squeeze in a narrow range since Wednesday's early European trading hours. 

While the upside has been capped around 1.2150, the bears have failed to push the pair below 1.2110. A breakout/breakdown from the newfound range would open the doors for at least a 40-pip bullish/bearish move. 

A range breakout looks likely as the MACD histogram has turned bullish for first since December. Further, the 40-pip looks like a bullish continuation pattern when viewed against the backdrop of Tuesday's upward break of the descending trendline connecting Jan. 6 and Jan. 29 highs. 

A move above 1.2150 would expose resistance at (Jan. 22 high). On the flip side, a break below 1.2110 would shift risk in favor of a drop toward 1.2050.

Hourly chart

Trend: Bullish

Technical levels