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Friday’s bullish candle needs follow through

  • Friday’s long-tailed candle has aborted EUR/USD’s immediate bearish bias. 
  • A close above Friday’s high is needed to revive the bullish bias. 

EUR/USD produced a big green candle with a long lower shadow on Friday, as it hit a low of 1.0727 and ended the day with 0.42% gains.

Friday’s candle has neutralized the immediate bearish setup. The bias would turn bullish if the spot closes out Monday above Friday’s high of 1.0830, signaling an end of the pullback from 1.10 and opening the doors to the 50-day average at 1.0954. A violation there would expose 1.10, which if breached, would invalidate the lower highs set up on the daily expose resistance located near 1.1150. 

A bullish close on the daily, if any, would also confirm a bearish channel breakout on the 4-hour chart. 

Alternatively, Friday’s low of 1.0727 is now the level to beat for the sellers. At press time, the spot is trading at 1.0815, representing marginal losses on the day. 

Daily chart

Trend: Bullish

Technical levels

 

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