EUR/USD technical analysis: 50% Fib capping upside, bearish hammer on D1

EUR/USD's bounce seems to have stalled at a key Fibonacci level.
Wednesday's hammer candle is warning of an impending bearish move.

Omkar Godbole FXStreet Contributor

EUR/USD's recovery rally from recent lows below 1.10 has stalled around the key Fibonacci level and a pullback could be in the offing.

The currency pair has repeatedly failed to beat 1.1082 – 50% Fibonacci retracement of 1.1175/1.10989 – in the last three days.

More importantly, EUR/USD created a bearish hammer candle on Wednesday, warning of an impending bearish move.

The combination of persistent failure at the key level and bearish candlestick pattern indicates the market will likely test dip demand with a pullback to 1.1050. Acceptance below that level would validate Wednesday's bearish hammer and shift risk in favor of a re-test of the recent low of 1.0989.

A bullish revival needs a close above 1.1082 (50% Fib + hammer's high). The pair is currently trading at 1.1078, representing marginal gains on the day.

Daily chart

Trend: Bearish

Technical levels

EUR/USD

Overview
Today last price	1.1078
Today Daily Change	0.0004
Today Daily Change %	0.04
Today daily open	1.1074

Trends
Daily SMA20	1.1078
Daily SMA50	1.1044
Daily SMA100	1.1091
Daily SMA200	1.1176

Levels
Previous Daily High	1.1082
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%	1.1064
Daily Fibonacci 61.8%	1.1071
Daily Pivot Point S1	1.1057
Daily Pivot Point S2	1.104
Daily Pivot Point S3	1.1027
Daily Pivot Point R1	1.1087
Daily Pivot Point R2	1.11
Daily Pivot Point R3	1.1116

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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