EUR/USD Price Analysis: Mildly bid in Asia, 1.1028 is the level to beat for the bulls
- EUR/USD failed to move higher following Tuesday's bullish hammer.
- The pair created a bearish outside day on Wednesday.
- A close above 1.1028 is needed to confirm a bullish reversal.
EUR/USD is currently trading at 1.1015, representing marginal gains on the day.
On Tuesday, the buyers defended the psychological support at 1.10 with a classic bullish hammer candle but failed to reinforce the change in direction with a continued move higher on Wednesday.
The single currency ran into offers at 1.1028 and fell to 1.0992 on Wednesday, marking a failure to hold above Tuesday's high of 1.1025. In the process, it carved out a bearish outside day candle, which occurs when the day begins with optimism, but ends on a negative note, engulfing preceding day's price action.
With that, the immediate bullish outlook put forward by Tuesday's candle has been neutralized.
The focus now is on Wednesday's high and low of 1.1028 and 1.0992, respectively. A close above 1.1028 would invalidate the bearish outside day and confirm a bullish reversal, opening the door for 1.11. On the other hand, a close below 1.0992 would imply a continuation of the sell-off from the Dec. 31 high at 1.1240.