EUR/USD technical analysis: 1.1052 is key support
|- EUR/USD's daily chart shows the pair is operating on slippery grounds.
- A break below 1.1052 looks likely and will likely invite stronger selling pressures.
EUR/USD could face strong selling pressure below key support of 1.1052.
The pair created a bearish hammer on Wednesday. That candlestick pattern is widely considered an early warning of an impending bearish reversal. The follow-through was bearish on Thursday – the pair clocked a high of 1.1097 before ending the day on a negative note at 1.1058, forming a red candle with a long upper wick.
However, the pair managed to avoid a close below 1.1052 – the low of the Wednesday's bearish hammer.
Traders usually wait for confirmation of trend change in the form of a break below the hammer candle's low. Hence, 1.1052 is a key level.
A break below that will likely yield a quick drop to 1.1030. The pair will likely find acceptance below 1.1052, as the long upper wick attached to Thursday's candle shows a "sell on rise" mentality.
The pair is currently trading at 1.1065, representing marginal gains on the day.
Daily chart
Trend: Bearish
Technical levels
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