EUR/USD Technical Analysis: EUR peeps above 1.15 after a long-tailed doji candle

• The EUR/USD created a big long-tailed doji candle yesterday, indicating the sell-off from the Sept. 24 high of 1.1815 has likely run its course.
• A bullish reversal would be confirmed if the spot closes today above the doji candle’s high of 1.1503. At press time, it is trading at 1.1512.
• The hourly chart is showing that the pair has cleared the descending trendline and is trading above the 50-hour and 100-hour exponential moving averages (MAs). The relative strength index (RSI) of 55 is biased toward the bulls. The 4-hour chart is reporting a bullish divergence of the RSI.
• The EUR is likely to post a positive follow-through to yesterday’s long-legged doji candle, that is, confirm a bullish reversal. The prospects of a bear-to-bull trend change would drop if the Italian bond yields spike in Europe.  

Hourly Chart

Spot Rate: 1.1512

Daily High: 1.1514

Daily Low: 1.1486

Trend: Cautiously bullish

Resistance

R1: 1.1544 (10-day EMA)

R2: 1.1578 (38.2% Fib R of 1.1815/1.1432)

R3: 1.16 (psychological level)

Support

S1: 1.1486 (session low)

S2: 1.1464 (Oct. 3 low)

S3: 1.1432 (previous day’s low)