Forex Strategy - EUR/USD Bearish Reversal Candles Hint At Correction
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- 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.
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Hourly Chart - Created Using FXCM Marketscope 2.0
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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