EUR/USD technical analysis: 1.1085 is the level to beat for the bulls

• EUR/USD’s weekly chart shows indecision or seller exhaustion.
• A weekly close above 1.1085 would validate last week’s spinning bottom and confirm a bullish reversal.

Sign of seller exhaustion have emerged on EUR/USD’s weekly chart, however, a break above the last week’s high of 1.1085 is needed to confirm a bullish reversal.

The common currency created a spinning bottom candle last week, which comprises of a small body and long upper and lower shadows. That candlestick is widely considered a sign of indecision.

However, in EUR’s case, the spinning bottom has appeared at multi-year lows and could be considered a sign of seller exhaustion and an impending bullish reversal. That said, the trend reversal would be confirmed if the pair manages to end the current week (Friday’s close) above 1.1085.

That could happen if the European Central Bank’s (ECB) stimulus measures fall short of market expectations. The central bank is expected to cut rates on Thursday and announce a fresh bond-buying program.

Weekly chart

Trend: Neutral

Technical levels