EUR/USD Price Analysis: Looks south after Tuesday's bearish pin bar
- EUR/USD is sidelined near 1.1915 during Wednesday's Asian hours.
- Tuesday's bearish pin bar represents uptrend exhaustion and suggests scope for a pullback.
EUR/USD could see a notable pullback in the short-term as the daily chart shows signs of uptrend exhaustion.
On Monday, the pair faced rejection above 1.20 and closed in the red at 1.1911, forming a bearish pin bar or inverted hammer candlestick pattern. The long upper wick attached to such candles signifies buyer fatigue. It is considered an early warning of an impending trend reversal lower – more so, in cases where the candlestick appears following a notable rally and at multi-month/year highs.
The EUR/USD has carved out the bearish pin bar following a rally from 1.08 to 1.20 and at the highest level since May 2018.
As such, a re-test of the support near 1.1750 looks likely. A daily close above 1.20 is needed to invalidate the bearish pin bar pattern.
Daily chart
Trend: Bearish
Technical levels
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