EUR/USD snaps longest losing streak in five months, focus on Lagarde's speech
|- EUR/USD on Tuesday snapped the six-day losing streak with a Dragonfly Doji.
- A break above 1.10 may remain elusive if the incoming ECB President Lagarde sounds dovish during her speech at 07:00 GMT.
EUR/USD eked out marginal gains on Tuesday, snapping the six-day losing streak, which was the longest in five months and could rise above 1.10 in the European session today.
Dragonfly Doji
The pair created a Dragonfly Doji candle on Tuesday, which is widely considered an indication of indecision and potential trend reversal. When the candle forms at the bottom of a downtrend, as is the case with EUR/USD, it is considered a sign of bullish reversal.
So, the probability of the pair revisiting the former support-turned-resistance of 1.10 is high.
ECB speak eyed
The European Central Bank's nominated President Lagarde is scheduled to speak at 07:00 GMT. The incoming European Central Bank (ECB) President Christine Lagarde will be grilled by European Parliament lawmakers on how she intends to run the monetary policy.
A break above 1.10, as suggested by Tuesday's candlestick pattern, will likely remain elusive if Lagarde reiterates that the monetary policy needs to remain highly accommodative and expresses willingness to use all the tools at the disposal to counter the economic slowdown and weaker inflation.
Lagarde is set to take charge on Nov. 1, replacing the departing head Mario Draghi.
Post-Lagarde's speech, the focus would shift to the final German and Eurozone purchasing managers' index (PMI) data, Eurozone retail sales and speech by ECB's Lane.
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.