EUR/USD Price Analysis: Flashing red after Doji candle
- EUR/USD is trading in the red after multiple bull failures at trendline resistance.
- Monday's Doji candle reinforced the immediate bearish setup.
EUR/USD is feeling the pull of gravity, having witnessed two-way or indecisive trading on Monday.
The currency pair is currently trading at 1.0850, representing a 0.12% drop on the day.
The buyers failed to penetrate the resistance of the trendline rising from March 23 and April 6 lows for the second day on Monday. More importantly, the currency pair created a Doji candle on Monday, reinforcing the bearish view put forward by the downside break of the trendline confirmed on Thursday.
That, alongside a below-50 or bearish reading on the 14-day relative strength index, suggests scope for a drop to 1.0812 (April 17 low). Acceptance under that would open the doors for a re-test of the March low of 1.0636.
Alternatively, a close above the Doji candle's high of 1.0897 would revive the immediate bullish setup and open the doors to 1.10.
Daily chart
Trend: Bearish