- EUR/USD charted a bearish engulfing candle on Wednesday.
- The bearish engulfing candle makes today’s close pivotal.
- A break below 1.1220 will likely invite stronger selling pressure.
EUR/USD jumped to a three-week high of 1.1307 in the US trading hours on Wednesday only to fall all the way back to 1.1220 by daily close.
Essentially, the common currency created a bearish engulfing candle on Wednesday.
A break below 1.1220 would validate Wednesday’s bearish engulfing candle and open the doors to retest of the recent low of 1.1116.
On the higher side, a daily close above the 100-day moving average resistance at 1.1272 is needed to revive the bullish view put forward by Monday’s descending triangle breakout.
As of writing, the spot is trading at 1.1232, having failed to secure a daily close above the 100-day MA in the previous two trading days.
Daily chart
Trend: Bearish below 1.1220
Technical levels
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