EUR/USD Price Analysis: Bullish hammer hints at bounce ahead
- EUR/USD charted a bullish hammer candle on Tuesday.
- A bounce to resistance at1.1050 could be in the offing.
- A close below 1.10 would imply bearish continuation.
EUR/USD produced a bullish hammer candle on Monday, as it defended the psychological support at 1.10 and closed with marginal gains at 1.1022.
The hammer candle is warning of ebbing bearish momentum and hinting a turn higher may be ahead.
Put simply, the sell-off from the Dec. 31 high of 1.1240 looks to have run out of steam and the bulls could make their presence felt by challenging 1.1038-1.1050.
A bullish hammer reversal pattern would be confirmed if the pair closes Wednesday above the hammer candle's high of 1.1025.
On the other hand, a close below 1.10 would imply a continuation of the sell-off from 1.1240.
Trend: Teasing bull reversal