EUR/USD technical analysis: Eyes 1.10 after Dragonfly Doji

• EUR/USD created a Dragonfly Doji on Tuesday – an early sign of bullish reversal.
• The pair could rise to 1.10 today, but a close above 1.0926 is needed to abort the bearish view.

EUR/USD is mildly bid at press time and could rise to 1.10 as technical charts are flashing early signs of a bullish trend reversal.

For instance,  the pair created a bullish Dragonfly Doji candle on Tuesday, which occurs when the opening and closing prices are nearly identical with little or no candle body.

A Dragonfly Doji occurring after an established downtrend is widely taken as a sign of impending bearish-to-bullish trend change.

In EUR’s case, the candlestick pattern snapped the six-day losing streak and could fuel a corrective bounce. That said, the bearish outlook would be invalidated if the pair manages to end the day above the former support-turned-resistance of 1.0926 (Aug. 1 low).

The bearish view would be bolstered if the pair closes today below 1.0926 (Dragonfly Doji’s low).

Daily chart

Trend: Oversold bounce likely

Pivot points