- EUR/USD bounces off from two week low.
- Doji candlestick formation favors the reversal of the previous downtrend, Hong Kong bill also provides support to the pullback.
- Three-day-old resistance line, 61.8% Fibonacci retracement in focus.
Not only a Doji candlestick formation on the four hours (H4) chart but fresh risk aversion also help the EUR/USD pair to take the bids near 1.1010 during Thursday’s Asian session.
Read: Hong Kong government: Reiterates bills are unnecessary and unwarranted
The Doji candlestick pattern indicates the reversal of the previous declines. In doing so, a three-day-old falling trend line around 1.1025 and 61.8% Fibonacci retracement of the last two weeks’ move, near 1.1030, could return to the chart.
However, pair’s further recovery can be challenged by November 20/21 lows near 1.1050/55, if not then 1.1085 and 1.1100 will become buyers’ favorites.
On the downside, pair’s declines below the monthly low surrounding 1.0990 could diver sellers to 1.0940 and 1.0900 rest points.
EUR/USD 4-hour chart
Trend: Recovery expected
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