EUR/USD Price Analysis: Daily chart now leans bearish

  • EUR/USD’s daily chart shows a bearish Doji reversal pattern. 
  • The pair risks falling to September lows near 1.1610.

EUR/USD looks south with the daily chart showing a bearish candlestick pattern and a failed breakout. 

Tuesday’s 0.57% drop indicates that the indecision period showed by Monday’s Doji candle has ended with a bear victory.  In other words, the pair has charted a bearish Doji reversal pattern in the past two days. 

The reversal lower has invalidated a bearish channel breakout confirmed by Friday’s bullish marubozu candle. A failed breakout often translates into stronger chart-driven selling. 

As such, EUR/USD could soon revisit the Sept. 25 low of 1.1612. At press time, the pair is sidelined near 1.1742. A close above Friday’s high of 1.1831 would revive the bullish outlook. 

Daily chart

Trend: Bearish

Technical levels

 

 

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