EUR/USD Price Analysis: Wednesday's drop confirmed bearish reversal on D1

EUR/USD's daily chart candlesticks signal a short-term bearish reversal.
The pair is trading in the red near 1.1838 at press time.

Omkar Godbole FXStreet Contributor

EUR/USD pair fell by 0.48% to 1.1855 on Wednesday, confirming a bullish-to-bearish trend change signaled by Tuesday's inverted hammer.

Candlesticks like the inverted hammer, bearish engulfing required confirmation – further downside follow-through, typically a negative close on the following day.

While the candlestick arrangement has now turned bearish, the 14-day relative strength, too, has turned lower from the descending trendline hurdle, reinforcing the short-term bearish bias.

As such, a drop to the Aug; 21 low of 1.1754 looks likely. Acceptance under that level would shift the focus down to the 50-day simple moving average (SMA) located at 1.1631.

On the higher side, Wednesday's high of 1.1929 is the level to beat for the bulls.

Daily chart

Trend: Bearish

Technical levels

EUR/USD

Overview
Today last price	1.1838
Today Daily Change	-0.0013
Today Daily Change %	-0.11
Today daily open	1.1855

Trends
Daily SMA20	1.1838
Daily SMA50	1.162
Daily SMA100	1.1321
Daily SMA200	1.1177

Levels
Previous Daily High	1.1929
Previous Daily Low	1.1822
Previous Weekly High	1.192
Previous Weekly Low	1.1762
Previous Monthly High	1.1966
Previous Monthly Low	1.1696
Daily Fibonacci 38.2%	1.1863
Daily Fibonacci 61.8%	1.1888
Daily Pivot Point S1	1.1808
Daily Pivot Point S2	1.1762
Daily Pivot Point S3	1.1702
Daily Pivot Point R1	1.1915
Daily Pivot Point R2	1.1975
Daily Pivot Point R3	1.2022

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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