Forex Strategy - EUR/USD Ominous Clouds Gather Near 1.3900
- EUR/USD Technical Strategy: Sidelines Preferred
- Dark Cloud Cover warning of a bearish reversal
- Caution suggested when looking at trading a correction
A Dark Cloud Cover formation on the EUR/USD daily chart has emerged near the psychologically-significant 1.3900 handle. While the pattern is a bearish reversal signal, caution is suggested when looking to trade a correction for the pair, given a Shooting Star candle was seemingly shrugged off last week.
EUR/USD: Clouds Gather Near 1.3900
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour timeframe; buyers appear to be supporting prices in intraday trade at the 1.3850 mark. Signs of a bullish reversal signal remain absent and a downside break would likely open up the next definite level of support at 1.3710.
EUR/USD: Supported In Intraday Trade
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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