- Consecutive Doji candles on EUR/USD’s daily chart indicate bullish exhaustion or indecision in the market.
- A break above the Doji candle’s high of 1.1250 is needed to revive the corrective rally.
EUR/USD needs to break above 1.1250 to unleash the next phase of the corrective rally, which began from lows near 1.1027 on Aug. 1.
A close above 1.1250 would invalidate bullish exhaustion or indecision signaled by the consecutive daily Doji candles and open the doors to levels above 1.13.
On the other hand, a daily close below 1.1167 – the low of Tuesday’s Doji candle – would imply an end of the corrective bounce from lows near 1.1027 and shift risk in favor retest of that level.
As of writing, the spot is trading at 1.1206. The outlook will remain neutral as long as the pair is trapped in 1.1167-1.1250 range.
Daily chart
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Trend: Neutral
Pivot points
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