- EUR/USD created a Doji candle on Thursday, making today’s close pivotal.
- A close above 1.1184 would confirm an inverse head-and-shoulders breakout.
EUR/USD has so far gained 13 pips in Asia and is trading at 1.1161, representing a 0.10% gain on the day.
On Thursday, the pair clocked a high and low of 1.1176 and 1.1131, respectively, and ended on a flat note, forming a Doji candle – a sign of indecision in the market place.
The Doji has stalled the recovery from the Oct. 25 low of 1.1073.
Acceptance above Doji’s high of 1.1176 would imply a continuation of the recovery rally. That said, stronger evidence of bullish reversal would be a close above 1.1184.
That would confirm an inverse head-and-shoulders breakout on the daily chart and open the doors for 1.1489 (target as per the measured move method).
A bearish Doji reversal would be confirmed if the pair closes today below 1.1131, shifting risk in favor of a drop to the higher low of 1.1073 (Oct. 25 low). A close below that level would confirm a bearish reversal.
Daily chart
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Trend: Bullish above 1.1184
Technical levels
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