EUR/USD technical analysis: Doji on D1, 1.1040/45 resistance question latest recovery
|- EUR/USD on the recovery mode from 38.2% Fibonacci retracement.
- 50-day SMA, seven-week-old falling trendline limits immediate upside.
- Doji on the daily (D1) chart doubts the latest pullback.
The EUR/USD pair’s latest recovery seems to be challenged soon considering Monday’s Doji candlestick formation on D1 and nearness to the key resistance-confluence. The quote currently takes the bids to 1.1030 by the press time of Tuesday morning in Asia.
Among the resistances, 50-day Simple Moving Average (SMA) and a downward sloping trend-line since late-August, around 1.1040/45, becomes the key for buyers as a break of which can escalate the recovery to 50% Fibonacci retracement of August-October downpour, at 1.1065 now.
During the pair’s further rise beyond 1.1065, 61.8% Fibonacci retracement near 1.1110 and August 23 high surrounding 1.1155 will lure buyers.
On the downside break below 38.2% Fibonacci retracement near 1.1020, the pair can revisit eight-day-old horizontal support around 1.1000 mark.
However, pair’s declines below 1.1000 may struggle to conquer a 21-day SMA level of 1.0985 and last week’s low nearing 1.0940.
EUR/USD daily chart
Trend: pullback expected
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.