Forex Strategy - EUR/USD Hanging Man Suggests Bulls In Doubt
- EUR/USD Technical Strategy: Intraday Range-Trading Preferred
- Hanging Man formation needs confirmation before suggesting correction
- Short-term range evident on four hour chart between 1.3875 and 1.3935
EUR/USD’s ascent is showing signs of slowing with the daily chart posting a Hanging Man formation that may be hinting at a correction for the pair. While the candlestick is noteworthy given its appearance near resistance at 1.3930, confirmation from a successive down day would be required before offering a bearish technical bias.
EUR/USD: Hanging Man Awaits Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to a four hour chart; the drawn out struggle between the bulls and bears continues. An intraday range is apparent with prices consolidating between 1.3875 and 1.3935 which may favor range-trading strategies.
EUR/USD: Range-Trading May Offer Opportunities As Choppiness Continues
4 Hour Chart - Created Using FXCM Marketscope 2.0
It should be noted that the upcoming FOMC March meeting offers substantial fundamental event risk for the US Dollar. The price action resulting from the decision may negate technical signals offered. Traders can watch live coverage of the event in the DailyFX Plus area of the site.
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.