News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Forex Strategy - EUR/USD Bearish Reversal Candles Hint At Correction

Forex Strategy - EUR/USD Bearish Reversal Candles Hint At Correction

David de Ferranti, Currency Analyst

To receive David’sanalysis directly via email, please SIGN UP HERE

Talking Points

  • EUR/USD Technical Strategy: Pending Short
  • Bearish reversal signal on daily awaits further confirmation
  • Hanging man on four hour chart warning of short-term correction

There are warning signs of a potential correction for the Euro on both the daily and four hour timeframes. A Hanging Man formation on the daily near the psychologically-significant 1.3900 handle has received confirmation from a successive down period. A correction lower may encounter buying support at the 23.6% Fib Retracement level at 1.3850.

However, the EUR/USD daily chart continues to be the focal point for traders. While a Shooting Star formation near multi-year trend line resistance is warning of declines, the uptrend remains intact. Further confirmation of a shift in the trend on the daily is needed before suggesting a near-term bearish technical bias.

Confirm your chart-based trade setups with the Technical Analyzer.

Forex_Strategy_-_EURUSD_Bearish_Reversal_Candles_Hint_At_Correction_body_Picture_2.png, Forex Strategy - EUR/USD Bearish Reversal Candles Hint At Correction

Hourly Chart - Created Using FXCM Marketscope 2.0

Forex_Strategy_-_EURUSD_Bearish_Reversal_Candles_Hint_At_Correction_body_Picture_1.png, Forex Strategy - EUR/USD Bearish Reversal Candles Hint At Correction

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by David de Ferranti, Market Analyst, FXCM

Contact and follow David on Twitter: @Davidde

New to FX? START HERE

For live market updates, visit the Real Time News Feed

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES