- EUR/USD charted a candle with long upper shadow on Wednesday.
- A break below 1.1187 would validate that bearish candle and allow a deeper drop.
EUR/USD clocked a high of 1.1265 on Wednesday before ending with moderate losses at 1.1193.
Essentially, the currency pair created a candle with long upper shadow – a sign the day began with optimism but ended on a pessimistic with sellers pushing the spot all the way back into the red.
That early sign of bearish trend reversal would gain credence if the spot finds acceptance below 1.1187 – the low of the candle with long upper shadow – inviting stronger selling pressure.
A close below 1.1187, if confirmed, would imply an end of the corrective bounce from the recent low of 1.1110 and open the doors to retest of that level. As of writing, the spot is trading at 1.1206, representing a 0.12% gain on the day.
Daily chart
Trend: Bearish below 1.1187
Pivot points
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