Forex Strategy - EUR/USD May Extend Gains With Reversal Signal Absent
- EUR/USD Technical Strategy: Longs preferred
- Dark Cloud Cover near 1.3900 fails to receive confirmation
- Absence of bearish reversal signal puts 1.3960 in focus
EUR/USD traders have seemingly shrugged off the bearish reversal signal offered by the Dark Cloud Cover formation near 1.3900 shown on the daily chart below. As signs of a turnaround remain absent, the Euro may be poised to continue its ascent, although sellers sitting around the 1.3930 mark in intraday trading may provide a small hurdle.
EUR/USD: Clouds Pass
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to a four hour chart; the drawn out struggle between the bulls and bears is evidenced by several Doji candlesticks near the 1.3910 mark. With the Euro bulls having won out, the 1.3960 resistance level is in focus for the session ahead.
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.