- EUR/USD created a Dragonfly Doji on Tuesday - an early sign of bullish reversal.
- The pair could rise to 1.10 today, but a close above 1.0926 is needed to abort the bearish view.
EUR/USD is mildly bid at press time and could rise to 1.10 as technical charts are flashing early signs of a bullish trend reversal.
For instance, the pair created a bullish Dragonfly Doji candle on Tuesday, which occurs when the opening and closing prices are nearly identical with little or no candle body.
A Dragonfly Doji occurring after an established downtrend is widely taken as a sign of impending bearish-to-bullish trend change.
In EUR's case, the candlestick pattern snapped the six-day losing streak and could fuel a corrective bounce. That said, the bearish outlook would be invalidated if the pair manages to end the day above the former support-turned-resistance of 1.0926 (Aug. 1 low).
The bearish view would be bolstered if the pair closes today below 1.0926 (Dragonfly Doji's low).
Daily chart
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Trend: Oversold bounce likely
Technical levels
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