EUR/USD Price Analysis: Struggles at 1.1020, regardless of a morning-star emerging
|- EUR/USD remains below the key 1.1000/1.1018 resistance area, hindered by the 20-day EMA and a one-month-old resistance trendline.
- The currency pair is trading at 1.1007, showing a slight decrease of 0.01% ahead of the Wall Street closing bell.
- Despite the emergence of a ‘morning-star’ three-candlestick chart pattern suggesting upward momentum, Monday’s doji formation signals hesitancy among buyers.
- Key resistance lies at 1.1020, with potential for movement towards 1.1055 and 1.1095, while support can be found at 1.0947 and 1.0933.
The EUR/USD erases some of its earlier losses but remains capped by the 20-day Exponential Moving Average (EMA) intersection with a resistance trendline at around the 1.1000/1.1018 area. The EUR/USD exchanges hands at 1.1007, down 0.01% ahead of the Wall Street close.
EUR/USD Price Analysis: Technical outlook
From a daily chart perspective, the EUR/USD should be headed upward as a ‘morning-star’ three-candlestick chart pattern emerges. But Monday’s price action forming a doji indicates buyers are struggling to gather momentum, which could lose control to sellers if the EUR/USD falls below 1.1000.
From a short-term standpoint, the EUR/USD is tilted upward, but a one-month-old resistance trendline would be difficult to surpass as the pair edges higher. A breach of 1.1020 will put into play the R1 daily pivot at 1.1055, followed by the April 26 high at 1.1095 ahead of 1.1100.
On the other hand, if EUR/USD tumbles below 1.1000, the following support would be the S1 pivot point at 1.0947, followed by last Friday’s low of 1.0933. Failure to crack the latter could spark an upward correction, as the EUR/USD could fail to achieve a new lower low. A continuation could pave the way to challenge 1.0900.
EUR/USD Price Action - Hourly chart
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