EUR/USD technical analysis: Under pressure, but risks skewed to the upside

The candlestick setup on EUR/USD's daily chart favors an extension of the recovery rally from recent lows near 1.0926.
The pair could challenge resistance at 1.1107 in the run-up to Thursday's ECB event.

Omkar Godbole FXStreet Contributor

EUR/USD is currently trading at 1.1043, down 25 pips from the high of 1.1068 reached on Monday.

The candlestick arrangement on the daily chart indicates the risks are skewed to the upside.

Notably, the pair created a bullish outside day candle on Monday, which occurs when the day begins with pessimism, but ends on an optimistic note, engulfing the price action seen in the preceding period.

More importantly. Monday's bullish outside day marks an upside break of the consolidation or indecision represented by Friday's inside day candle.

Put simply, the path of least resistance is to the high side and the pair could rise to 1.1107 (May 23 low) ahead of Thursday's European Central Bank rate decision.

The bullish case would weaken if the pair drops below 1.1015 (Monday's low).

Daily chart

Trend: Bullish

Technical levels

EUR/USD

Overview
Today last price	1.1043
Today Daily Change	-0.0002
Today Daily Change %	-0.02
Today daily open	1.1047

Trends
Daily SMA20	1.107
Daily SMA50	1.1148
Daily SMA100	1.1189
Daily SMA200	1.1268

Levels
Previous Daily High	1.1068
Previous Daily Low	1.1016
Previous Weekly High	1.1085
Previous Weekly Low	1.0926
Previous Monthly High	1.1251
Previous Monthly Low	1.0962
Daily Fibonacci 38.2%	1.1048
Daily Fibonacci 61.8%	1.1036
Daily Pivot Point S1	1.1019
Daily Pivot Point S2	1.0991
Daily Pivot Point S3	1.0967
Daily Pivot Point R1	1.1072
Daily Pivot Point R2	1.1096
Daily Pivot Point R3	1.1124

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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