EUR/USD Price Analysis: Bullish hammer hints at bounce ahead

EUR/USD charted a bullish hammer candle on Tuesday.
A bounce to resistance at1.1050 could be in the offing.
A close below 1.10 would imply bearish continuation.

Omkar Godbole FXStreet Contributor

EUR/USD produced a bullish hammer candle on Monday, as it defended the psychological support at 1.10 and closed with marginal gains at 1.1022.

The hammer candle is warning of ebbing bearish momentum and hinting a turn higher may be ahead.

Put simply, the sell-off from the Dec. 31 high of 1.1240 looks to have run out of steam and the bulls could make their presence felt by challenging 1.1038-1.1050.

A bullish hammer reversal pattern would be confirmed if the pair closes Wednesday above the hammer candle's high of 1.1025.

On the other hand, a close below 1.10 would imply a continuation of the sell-off from 1.1240.

Daily chart

Trend: Teasing bull reversal

Technical levels

EUR/USD

Overview
Today last price	1.1025
Today Daily Change	0.0003
Today Daily Change %	0.03
Today daily open	1.1022

Trends
Daily SMA20	1.1114
Daily SMA50	1.1101
Daily SMA100	1.1072
Daily SMA200	1.113

Levels
Previous Daily High	1.1025
Previous Daily Low	1.0998
Previous Weekly High	1.1118
Previous Weekly Low	1.102
Previous Monthly High	1.124
Previous Monthly Low	1.1002
Daily Fibonacci 38.2%	1.1015
Daily Fibonacci 61.8%	1.1008
Daily Pivot Point S1	1.1005
Daily Pivot Point S2	1.0988
Daily Pivot Point S3	1.0978
Daily Pivot Point R1	1.1032
Daily Pivot Point R2	1.1042
Daily Pivot Point R3	1.1059

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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