Forex Strategy: EUR/USD Hanging Man Suggests Declines To Continue
- EUR/USD Technical Strategy: Shorts Preferred
- Hanging Man receives confirmation suggesting correction to continue
- Short-term gains may be limited in absence of reversal signal
The EUR/USD daily chart is warning of a reversal following the formation of a Hanging Man candle which has received confirmation from a pursuing down-day. A break below support near the 23.6% Fib Retracement level at 1.3832 may open up fresh declines towards the 1.3765 mark.
EUR/USD: Hanging Man Recieves Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to a four hour chart; intraday support rests just above the psychologically significant 1.3800 handle. However, a bullish reversal signal remains absent, which suggests intraday gains may be limited.
EUR/USD: Intraday Gains Limited As Reversal Signal Absent
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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