- EUR/USD trades lower in Asia, as dollar gains on risk-off.
- Thursday’s bearish candlestick pattern favors a deeper decline.
EUR/USD is losing altitude in Friday’s Asian session, having formed a “Gravestone Doji” – bearish candlestick pattern – on Thursday.
A Gravestone Doji on the daily chart occurs when the bulls fail to keep gains at session highs, and bears end up pushing prices back to the daily opening price. EUR/USD clocked a high of 1.2243 on Thursday but closed flat at 1.2167, implying bull fatigue and warning of an impending reversal lower.
The pair is now trading near 1.2142, representing a 0.2% drop on the day.
The immediate support is seen at 1.2109 (Wednesday’s low), which, if breached, would open the doors to 1.2023 (Feb. 17 low). On the higher side, a close above 1.2243 is needed to invalidate the bearish bias.
Daily chart
Trend: Bearish
Technical levels
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