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  • EUR/USD on Tuesday snapped the six-day losing streak with a Dragonfly Doji.
  • A break above 1.10 may remain elusive if the incoming ECB President Lagarde sounds dovish during her speech at 07:00 GMT.  

EUR/USD eked out marginal gains on Tuesday, snapping the six-day losing streak, which was the longest in five months and could rise above 1.10 in the European session today.

Dragonfly Doji

The pair created a Dragonfly Doji candle on Tuesday, which is widely considered an indication of indecision and potential trend reversal. When the candle forms at the bottom of a downtrend, as is the case with EUR/USD, it is considered a sign of bullish reversal.

So, the probability of the pair revisiting the former support-turned-resistance of 1.10 is high.

ECB speak eyed

The European Central Bank’s nominated President Lagarde is scheduled to speak at 07:00 GMT.  The incoming European Central Bank (ECB) President Christine Lagarde will be grilled by European Parliament lawmakers on how she intends to run the monetary policy.

A break above 1.10, as suggested by Tuesday’s candlestick pattern, will likely remain elusive if Lagarde reiterates that the monetary policy needs to remain highly accommodative and expresses willingness to use all the tools at the disposal to counter the economic slowdown and weaker inflation.

Lagarde is set to take charge on Nov. 1, replacing the departing head Mario Draghi.

Post-Lagarde’s speech, the focus would shift to the final German and Eurozone purchasing managers’  index (PMI) data, Eurozone retail sales and speech by ECB’s Lane.

Technical levels