EUR/USD Price Analysis: Dips below 1.0900, though retains bullish bias on daily chart
- EUR/USD is bullish despite falling to a three-day low.
- The daily chart portrays the formation of a bullish hammer, which could pave the way to challenge 1.1000.
- A bearish resumption would happen if EUR/USD stays below 1.0900.
The Euro (EUR) dropped to a three-day low against the US Dollar (USD), though it remains bullish according to the daily chart, as Wednesday’s price action formed a ‘hammer’ preceded by a downtrend. Although it warrants further upside is expected, the break of crucial resistance levels must be achieved to extend the rally. The EUR/USD trades at 1.0884, down 0.03%.
To cement the uptrend, EUR/USD buyers need to reclaim the 1.0900 figure. Once done, the next resistance level would be the November 21 swing high at 1.0965, followed by the 1.1000 figure. A breach of the latter would expose the August 10 high at 1.1065.
Conversely, if EUR/USD stays below 1.0900 and extends its losses past the November 22 low of 1.0852, that could exacerbate the pair’s drop to challenge the 200-day moving average (DMA) at 1.0808. If buyers surrender the latter, the major would fall toward the 1.0700 mark.