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  • Thursday’s Doji candle has neutralized the immediate bullish setup.
  • Doji’s high and low of 1.1085 and 1.1017 are the levels to beat for the bulls and the bears.

EUR/USD created a doji candle on Thursday, pouring cold water over the optimism generated by the bullish candlestick reversal pattern confirmed earlier this week.

So, the Doji candle has neutralized the immediate setup and has made today’s close pivotal.

A close above the Doji candle’s high of 1.1085 would signal a resumption of the rally from the recent low of 1.0926 and could yield a test of resistance at 1.1164 (Aug. 26 high).

A close below 1.1017 (Doji candle’s low) would put the bears back in a commanding position, possibly leading to a drop to 1.0926-1.09.

As of writing, the pair is chipping away at the descending (bearish) 10-day moving average (MA) at 1.1035.

If the 10-day MA continues to cap the upside for the next few hours, the pair may end up falling below key support at 1.1017.

Daily chart

Trend: Neutral

Technical levels