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EUR/USD Technical Analysis: Sidelined near 1.11 after Doji

  • EUR/USD witnessed two-way business and created a Doji candle on Thursday. 
  • A close below Doji's low of 1.1093 will likely bolster bearish pressures. 

EUR/USD is lacking a clear directional bias in Asia. 

The pair is currently trading in a sideways manner around 1.11, having charted a Doji candle on Thursday. 

A Doji candle is formed when a currency pair sees two-way business and ends unchanged on the day. The candle essentially represents indecision in the market place and makes the following day's close pivotal. 

So, if the pair closes below 1.1093 (Doji's low) on Friday, it would imply a continuation of the sell-off from the recent high of 1.1239. 

On the other hand, a close above 1.1120 would confirm a bullish Doji reversal. 

The pair has already breached the trendline sloping higher from the Nov. 29 and Dec. 24 lows and the 14-day relative strength index (RSI) is reporting a bearish bias with a below-50 print. 

Hence, a bearish close looks likely. The pair, however, could pick up a strong bid and close above 1.1120 if the US Nonfarm Payrolls figure for December, scheduled for release at 13:30 GMT, misses estimates by a big margin.

Daily chart

Trend: Indecisive

Technical levels

 

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