Forex Strategy - EUR/USD Sets Sights Higher In Absence Of Reversal Signal
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- EUR/USD Technical Strategy: Longs preferred
- Lack of reversal signal opens further gains
- Clearance of 1.3930 may open up further advance
In the absence of a bearish reversal pattern for EUR/USD and a continued uptrend on multiple timeframes; a bullish technical bias is offered. The pair has seemingly shrugged off a Shooting Star formation on the daily chart that had hinted at some declines near the psychologically-significant 1.3900 handle.
Some sellers appear to be emerging near the mid-September 2011 highs at 1.3930 however there are few signs to indicate that a meaningful correction could take place. The next definitive resistance level at 1.4250 seems a mile away, suggesting the bulls may face a clear path ahead.
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4 Hour 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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