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EUR/USD Technical Analysis: EUR peeps above 1.15 after a long-tailed doji candle
- The EUR/USD created a big long-tailed doji candle yesterday, indicating the sell-off from the Sept. 24 high of 1.1815 has likely run its course.
- A bullish reversal would be confirmed if the spot closes today above the doji candle's high of 1.1503. At press time, it is trading at 1.1512.
- The hourly chart is showing that the pair has cleared the descending trendline and is trading above the 50-hour and 100-hour exponential moving averages (MAs). The relative strength index (RSI) of 55 is biased toward the bulls. The 4-hour chart is reporting a bullish divergence of the RSI.
- The EUR is likely to post a positive follow-through to yesterday's long-legged doji candle, that is, confirm a bullish reversal. The prospects of a bear-to-bull trend change would drop if the Italian bond yields spike in Europe.
Hourly Chart
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Spot Rate: 1.1512
Daily High: 1.1514
Daily Low: 1.1486
Trend: Cautiously bullish
R1: 1.1544 (10-day EMA)
R2: 1.1578 (38.2% Fib R of 1.1815/1.1432)
R3: 1.16 (psychological level)
Support
S1: 1.1486 (session low)
S2: 1.1464 (Oct. 3 low)
S3: 1.1432 (previous day's low)
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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