Forex Strategy: EUR/USD Drifts towards 1.3700 Post Shooting Star
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- EUR/USD Technical Strategy: Shorts preferred on break below 1.3700
- Shooting Star pattern hinted at declines after test of 1.3780
- Upcoming ECB rate decision likely to offer volatility
EUR/USD has continued its downward drift towards the 1.3700 handle as the bulls remain unable to reclaim their grip on the pair. The Shooting Star formation pictured on the hourly chart below warned of declines for the Euro and arose at notable intraday resistance at 1.3780.
While downside momentum appears to be stalling, we’re yet to see a bullish reversal pattern emerge which could hint at a bounce. A clearance of strong buying support around 1.3700 is likely needed before confirming a bearish technical bias for the pair.
Traders should make a note of the upcoming ECB rate decision due in the next few hours which poses key fundamental event risk and may obfuscate technical signals.
Confirm your chart-based trade setups with the Technical Analyzer.
Hourly 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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