EUR/USD Price Analysis: Monday's candle signifies indecision

EUR/USD traded back and forth in a 106-pip range on Monday, forming a candle with long upper wicks on the daily chart. Such candles imply indecision o  |  24/11/2020 02:29
  • Long wicks attached to Monday's candle indicate a lack of clear directional bias.
  • A close above Monday's high is needed to revive the bullish view. 

EUR/USD traded back and forth in a 106-pip range on Monday, forming a candle with long upper wicks on the daily chart. 

Such candles imply indecision or a situation where both bulls and the bears are unwilling or lack the strength to lead the price action. 

Therefore, the immediate bias will remain neutral as long as the pair is trading within Monday's range of 1.18-1.1906. 

A daily close above 1.1906 would mean the period of indecision has ended with a bullish breakout. That would open the doors for a rally to at least 1.2012 (target as per the measured move method). 

Alternatively, acceptance under 1.18 would confirm a bearish reversal and shift risk in favor of a drop to 1.1602 (Nov. 4 low). The pair is currently trading largely unchanged on the day near 1.1845. 

Daily chart

Trend: Neutral

Technical levels

 

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