EUR/USD technical analysis: 1.1052 is key support

EUR/USD's daily chart shows the pair is operating on slippery grounds.
A break below 1.1052 looks likely and will likely invite stronger selling pressures.

Omkar Godbole FXStreet Contributor

EUR/USD could face strong selling pressure below key support of 1.1052.

The pair created a bearish hammer on Wednesday. That candlestick pattern is widely considered an early warning of an impending bearish reversal. The follow-through was bearish on Thursday – the pair clocked a high of 1.1097 before ending the day on a negative note at 1.1058, forming a red candle with a long upper wick.

However, the pair managed to avoid a close below 1.1052 – the low of the Wednesday's bearish hammer.

Traders usually wait for confirmation of trend change in the form of a break below the hammer candle's low. Hence, 1.1052 is a key level.

A break below that will likely yield a quick drop to 1.1030. The pair will likely find acceptance below 1.1052, as the long upper wick attached to Thursday's candle shows a "sell on rise" mentality.

The pair is currently trading at 1.1065, representing marginal gains on the day.

Daily chart

Trend: Bearish

Technical levels

EUR/USD

Overview
Today last price	1.1065
Today Daily Change	0.0009
Today Daily Change %	0.08
Today daily open	1.1057

Trends
Daily SMA20	1.1075
Daily SMA50	1.1044
Daily SMA100	1.1089
Daily SMA200	1.1175

Levels
Previous Daily High	1.1098
Previous Daily Low	1.1052
Previous Weekly High	1.1058
Previous Weekly Low	1.0989
Previous Monthly High	1.118
Previous Monthly Low	1.0879
Daily Fibonacci 38.2%	1.1069
Daily Fibonacci 61.8%	1.108
Daily Pivot Point S1	1.104
Daily Pivot Point S2	1.1023
Daily Pivot Point S3	1.0995
Daily Pivot Point R1	1.1086
Daily Pivot Point R2	1.1114
Daily Pivot Point R3	1.1131

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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