EUR/USD Candlestick Analysis: Awaiting Upside Follow-Through
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EUR/USD Strategy: Flat
Reversal Signal Waiting for Follow-Through
Bounce to be Treated as Opening to Get Short
The Euro may be bottoming against the US Dollar following the appearance of a bullish Piercing Line candlestick pattern. A move above the 14.6% Fibonacci retracement at 1.0973 exposes the 23.6% threshold at 1.1291.Alternatively, a push belowthe 14.6% Fib expansion at 1.0535 exposes the intersection of a multi-year channel floor and the 23.6% threshold at 1.0217.
Our long-term fundamental outlook continues to favor broad-based Euro weakness. With that in mind, we will look to on-coming gains as an opportunity to establish a short position at more attractive levels once the upswing is exhausted.
Weekly Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com