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Forex News

Prints longest daily winning run of 2020, focus on weekly close

  • EUR/USD has produced a doji candle on the 4-hour chart, stalling the recovery rally. 
  • A weekly close above 1.0864 is needed to confirm a bullish reversal. 

EUR/USD closed 0.25% higher on Tuesday, having eked out gains in the previous two trading days. 

The single currency has printed a three-day winning streak for the first time since the end of December. 

At press time, the pair is trading at 1.0876. A doji candle has emerged on the 4-hour chart. The pattern indicates indecision and has weakened the case for a continuation of the recovery rally. 

If the pair finds acceptance under 1.0872 (the low of the doji candle), a bearish doji reversal would be confirmed. That will likely invite stronger selling pressure, pushing the pair lower to 1.0825 (4H 50-MA). 

Alternatively, a break above 1.0890 would invalidate the doji candle and strengthen the odds of a move to 1.8026 (4H chart resistance). 

Focus on the weekly close

While the pair has recovered from 1.0778 to 1.0890 in the last three days, a bullish reversal is still not confirmed. 

A weekly close above 1.0864 is needed to validate last week’s hammer candle and confirm a bearish-to-bullish trend change. 

4-hour chart

Weekly chart

Trend: Neutral

Technical levels

 

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