EUR/USD Price Analysis: Snaps 7-day winning run with an inside day candle

EUR/USD's daily chart shows a bearish inside day candle.
The 14-day RSI shows the rally is overdone.
The pair could witness a pullback to the ascending 10-day SMA.

Omkar Godbole FXStreet Contributor

EUR/USD fell by 0.31% on Tuesday, forming an inside day candle and snapping a seven-day winning trend that saw the single currency rally from 1.14 to 1.1781.

Inside day is a candlestick pattern that forms after an asset has experienced daily price ranges within the previous day's high and low. While the pair fell by 0.31% on Tuesday, it traded well within Monday's high and low of 1.1781 and 1.1641.

Essentially, inside day pattern represents consolidation or indecision and is considered an early warning of a trend reversal if it appears following a notable rally or sell-off. In this case, the inside has appeared at 22-month highs.

That, alongside an above-50 reading on the 14-day relative strength index, suggests a temporary top has been made. The pair could pullback to the 10-day simple moving average, currently at 1.1579. At press time, the pair is trading largely unchanged on the day near 1.1725.

Daily chart

Trend: Pullback likely

Technical levels

EUR/USD

Overview
Today last price	1.1725
Today Daily Change	0.0003
Today Daily Change %	0.03
Today daily open	1.1716

Trends
Daily SMA20	1.1423
Daily SMA50	1.1281
Daily SMA100	1.109
Daily SMA200	1.1078

Levels
Previous Daily High	1.1774
Previous Daily Low	1.1699
Previous Weekly High	1.1658
Previous Weekly Low	1.1402
Previous Monthly High	1.1422
Previous Monthly Low	1.1097
Daily Fibonacci 38.2%	1.1727
Daily Fibonacci 61.8%	1.1745
Daily Pivot Point S1	1.1685
Daily Pivot Point S2	1.1655
Daily Pivot Point S3	1.161
Daily Pivot Point R1	1.176
Daily Pivot Point R2	1.1805
Daily Pivot Point R3	1.1835

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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