EUR/USD Price Analysis: Inverted hammer has exposed trendline support

Tuesday's inverted bearish hammer bolstered bearish setup.
EUR/USD risks falling to a three-month rising trendline.

Omkar Godbole FXStreet Contributor

EUR/USD risks falling to support of the trendline rising from Oct. 1 and Nov. 29 lows.

The pair carved out an inverted bearish hammer on Tuesday, as it faced rejection at 1.1118 and ended on a negative note.

That candle has reinforced the bearish view put forward by the lower highs setup created over the last two weeks. Also, the pair closed below 1.1085 (Jan. 10 low) on Tuesday, establishing a lower low.

The pair, therefore, looks set to test the rising trendline support at 1.1067. A violation there would expose 1.1040 (Dec. 6 low).

On the higher side, a close above the Jan. 16 high of 1.1173 is needed to invalidate the lower highs set up and confirm a bullish reversal.

Daily chart

Trend: Bearish

Technical levels

EUR/USD

Overview
Today last price	1.1085
Today Daily Change	-0.0002
Today Daily Change %	-0.02
Today daily open	1.1087

Trends
Daily SMA20	1.1143
Daily SMA50	1.1101
Daily SMA100	1.1072
Daily SMA200	1.1135

Levels
Previous Daily High	1.1118
Previous Daily Low	1.1086
Previous Weekly High	1.1173
Previous Weekly Low	1.1086
Previous Monthly High	1.124
Previous Monthly Low	1.1002
Daily Fibonacci 38.2%	1.1098
Daily Fibonacci 61.8%	1.1106
Daily Pivot Point S1	1.1076
Daily Pivot Point S2	1.1065
Daily Pivot Point S3	1.1044
Daily Pivot Point R1	1.1108
Daily Pivot Point R2	1.1129
Daily Pivot Point R3	1.114

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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