EUR/USD technical analysis: 1.1052 is key support

EUR/USD's daily chart shows the pair is operating on slippery grounds.
A break below 1.1052 looks likely and will likely invite stronger selling pressures.

Omkar Godbole FXStreet Contributor

EUR/USD could face strong selling pressure below key support of 1.1052.

The pair created a bearish hammer on Wednesday. That candlestick pattern is widely considered an early warning of an impending bearish reversal. The follow-through was bearish on Thursday – the pair clocked a high of 1.1097 before ending the day on a negative note at 1.1058, forming a red candle with a long upper wick.

However, the pair managed to avoid a close below 1.1052 – the low of the Wednesday's bearish hammer.

Traders usually wait for confirmation of trend change in the form of a break below the hammer candle's low. Hence, 1.1052 is a key level.

A break below that will likely yield a quick drop to 1.1030. The pair will likely find acceptance below 1.1052, as the long upper wick attached to Thursday's candle shows a "sell on rise" mentality.

The pair is currently trading at 1.1065, representing marginal gains on the day.

Daily chart

Trend: Bearish

Technical levels

EUR/USD

Overview
Today last price	1.1065
Today Daily Change	0.0009
Today Daily Change %	0.08
Today daily open	1.1057

Trends
Daily SMA20	1.1075
Daily SMA50	1.1044
Daily SMA100	1.1089
Daily SMA200	1.1175

Levels
Previous Daily High	1.1098
Previous Daily Low	1.1052
Previous Weekly High	1.1058
Previous Weekly Low	1.0989
Previous Monthly High	1.118
Previous Monthly Low	1.0879
Daily Fibonacci 38.2%	1.1069
Daily Fibonacci 61.8%	1.108
Daily Pivot Point S1	1.104
Daily Pivot Point S2	1.1023
Daily Pivot Point S3	1.0995
Daily Pivot Point R1	1.1086
Daily Pivot Point R2	1.1114
Daily Pivot Point R3	1.1131

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.