EUR/USD Faces Consolidation Amid Absence Of Bearish Patterns
Morning Star Pattern Suggested A Turn Higher
Consolidation May Lie Ahead With Resistance Nearby
EUR/USD achieved the downside targets offered in recent candlestick reports. However, the downside risks have somewhat abated following the rise of a Morning Star near 1.2245. With bearish reversal signals lacking a pullback at this stage is questionable. At the same time sellers appear prepared to cap the pair at the 1.2620 mark. This in turn may suggest a consolidative period ahead.
Traders should note the upcoming FOMC Decision offers substantial fundamental event risk that may negate technical signals offered.
EUR/USD: May Consolidate Amid Absence Of Definitive Bearish Signals
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Dark Cloud Cover candlestick pattern near 1.2565 on the four hour chart suggests reluctance from the bulls to lead the Euro higher. Yet at this stage a pullback has proven fairly lackluster with buyers sitting at the 1.2500 handle.
EUR/USD: Bearish Pattern Finds Limited Follow Through Near Intraday Support
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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