EUR/USD Technical Analysis: Looks heavy after strong rejection above key hurdle


  • Wednesday's candle is signaling buyer exhaustion above key resistance. 
  • EUR/USD is likely to test dip demand with a drop to 1.1050.

EUR/USD is looking south, having faced strong rejection above key resistance at 1.1097 in the overnight trade.

The pair clocked a high of 1.1116 during the US trading hours only to close Wednesday with marginal losses at 1.1078.

Essentially, the pair created a candle with a long upper shadow, signaling buyer exhaustion above the bearish lower high of 1.1097 created on Nov. 21. The pair is now likely to test dip demand with a drop to 1.1050 – more so, as the MACD histogram on the 4-hour chart has crossed below zero. Currently, EUR/USD is sidelined around 1.1080. 

The recent lows below 1.10 could come into play if the pair finds acceptance below 1.1066 (Wednesday's low), confirming a bearish reversal. On the flip side, a convincing close above 1.1097 is needed to invalidate the lower highs set up and confirm a bullish reversal.

Daily chart

Trend: Bearish

Technical levels

EUR/USD

Overview
Today last price 1.1082
Today Daily Change 0.0003
Today Daily Change % 0.03
Today daily open 1.1079
 
Trends
Daily SMA20 1.104
Daily SMA50 1.1047
Daily SMA100 1.1071
Daily SMA200 1.1161
 
Levels
Previous Daily High 1.1116
Previous Daily Low 1.1066
Previous Weekly High 1.1034
Previous Weekly Low 1.0981
Previous Monthly High 1.1176
Previous Monthly Low 1.0981
Daily Fibonacci 38.2% 1.1086
Daily Fibonacci 61.8% 1.1097
Daily Pivot Point S1 1.1059
Daily Pivot Point S2 1.1038
Daily Pivot Point S3 1.1009
Daily Pivot Point R1 1.1108
Daily Pivot Point R2 1.1137
Daily Pivot Point R3 1.1158

 

 

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