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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Forex Strategy - EUR/USD Ominous Clouds Gather Near 1.3900

Forex Strategy - EUR/USD Ominous Clouds Gather Near 1.3900

David de Ferranti, Currency Analyst

Talking Points

  • 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

Forex_Strategy_-_EURUSD_Ominous_Clouds_Gather_Near_1.3900_body_Picture_2.png, Forex Strategy - EUR/USD Ominous 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

Forex_Strategy_-_EURUSD_Ominous_Clouds_Gather_Near_1.3900_body_Picture_1.png, Forex Strategy - EUR/USD Ominous Clouds Gather Near 1.3900

4 Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, FXCM

Follow David on Twitter: @Davidde

To receive David’s analysis directly via email, please sign up here.

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