Forex Strategy - EUR/USD Doji Suggests Fading Momentum At 1.3900
- EUR/USD Technical Strategy: Short Pending
- Dark Cloud Cover warning of a bearish reversal
- Dojis on four hour highlight indecision
EUR/USD continues to wobble around the critical 1.3900 handle as a Dark Cloud Cover formation on the daily threatens some weakness ahead for the pair. However, caution is suggested when looking at shorting the Euro, given that several bearish reversal patterns on the daily were shrugged off by traders during the currency’s recent ascent.
EUR/USD: Clouds Gather Near 1.3900
Daily Chart - Created Using FXCM Marketscope 2.0
The four hour chart also reveals some hesitation amongst traders as the bulls and bears battle it out for control around 1.3900. A Doji candle near intraday resistance at 1.3910 suggests some short-term weakness for the session ahead, with buyers likely to step in at the 1.3850 mark.
EUR/USD: Signs of Indecision
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.