EUR/USD Retest Of 1.3500 To Offer New Short Entries
EUR/USD Technical Strategy: Shorts Preferred
Doji highlights hesitation following break below 1.3500
Absence of key reversal patterns casts doubt on a recovery
EUR/USD’s descent following the break of support at 1.3500 has stalled with a Doji formation indicating indecision from traders. However, the candlestick pattern is not classed as a bullish reversal signal, which leaves the prospect of a recovery for the pair as questionable. A retest of the 1.3500 handle would be seen as an opportunity to enter new short positions, while a daily close above the now-resistance level would invalidate a bearish technical bias.
EUR/USD: Retest Of 1.3500 To Offer New Short Entries
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Drilling down to the four hour chart; a sea of Doji candlesticks near 1.3455 suggested significant hesitation from the Euro bears to push the single currency lower. However, similarly to the daily chart; key reversal patterns remain absent. This suggests a recovery may prove short-lived.
EUR/USD: Absence of Key Reversal Patterns Casts Doubt On A Recovery
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Market Analyst, DailyFX
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