Currently, the EURUSD is mildly bid around 0.7350, having created a doji candle pattern on Thursday. What does the pattern indicate? Find out from today’s 20 July EURUSD Technical Outlook.
20 July, GKFX – The candlestick pattern indicates indecision in the market place and the pair will likely adopt a bearish/bullish bias depending on today’s close.
The pair is seen resuming the journey towards 1.1852 (June 14 high) if it closes above the yesterday’s doji candle high of 1.1852 (June 14 high).
On the other hand, a close below 1.1575 would add credence to Tuesday’s bearish outside-day candle and would shift risk in favor of a drop below 1.15 (psychological support).
US and China War Impact
The Yuan devaluation and the rising fears of full-blown currency war between the US and China could trigger risk aversion in the equities and keep the common currency under pressure.
Moreover, a retaliatory action by the US could also force the ECB and other central banks to adopt a dovish stance. No first tier data are scheduled for release in Europe and US, hence, the pair is at the mercy of the broader market sentiment.
20 July EURUSD Technical Outlook
Resistance: 1.1692 (50-day moving average), 1.1745 (July 17 high), 1.1852 (June 14 high).
Support: 1.1575 (previous day’s low), 1.1508 (June 21 low), 1.1450 (100-week moving average).
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