EUR/USD Price Analysis: Doji on the daily indicates indecision
- EUR/USD created a Doji candle on Thursday and remains flat in Asia.
- Fed's Powell introduced average inflation targeting on Thursday.
The EUR/USD market has turned indecisive, as indicated by Thursday’s Doji candle.
The pair whipsawed after Federal Reserve’s chairman Jerome Powell introduced an average inflation target of 2%. Under the new strategy, the Fed will be more willing to allow inflation to run above the target of 2% before raising rates.
The high and low of the Doji are now key levels to watch out for in the short-term. A close above Doji’s high of 1.1902 would mean the period of indecision has ended with bulls regaining control. In that case, the pair may rise to the psychological hurdle of $1.20.
Alternatively, a close below Doji’s low of 1.1762 would imply a short-term bearish reversal and expose the former hurdle-turned-support at 1.1495 (March high).
Daily chart
Trend: Neutral
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
