- EUR/USD’s charted a bearish Gravestone Doji candle on Monday.
- The pair risks falling to key support near 1.1730.
EUR/USD found bids on Monday and printed a high of 1.1850 before closing the day on a flat note at 1.1787.
The pair formed a “Gravestone Doji” candle, reinforcing the bearish outlook presented by Friday’s big red engulfing candle and the negative divergence of the 14-day relative strength index confirmed last week.
The 5- and 10-day simple moving averages (SMAs) have produced a bearish crossover and the daily chart MACD histogram is printing deeper bars below the zero line – a sign of strengthening of the bearish momentum.
As such, the pair risks falling to the daily chart sideways channel support, currently at 1.1732. At press time, the pair is sidelined near 1.1792. A close bove 1.0850 would invalidate the Gravestone Doji candle.
Daily chart
Trend: Bearish
Technical levels
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