Forex Strategy: EUR/USD Eyes 1.3800 In Absence of Bearish Reversal Signal
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- EUR/USD Technical Strategy: Absence of reversal signal leaves upside favored
- Uptrend on daily and clearance of 1.3700 suggests gains to continue
- Psychologically significant 1.3800 mark likely to prompt emergence of sellers
The Euro has extended its recent gains following a critical test of the 1.3700 handle. As suggested in the most recent candlesticks report caution is suggested when looking at trading a reversal with EUR/USD, given that the pair remains in an uptrend on the daily.
Previous hints at a reversal have seemingly been shrugged off by the pair. This includes most recently a Shooting Star bearish reversal candlestick pattern, which failed to results in a more meaningful decline. In the absence of confirmation for a move lower, the upside is preferred. The 1.3800 mark is likely to prompt some selling pressure to emerge.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by David de Ferranti, Market Analyst, FXCM
Contact and follow David on Twitter: @Davidde
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