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Forex Strategy: EUR/USD Hanging Man Suggests Declines To Continue

Forex Strategy: EUR/USD Hanging Man Suggests Declines To Continue

David de Ferranti, Currency Analyst

Talking Points

  • 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

Forex-Strategy-EURUSD-Hanging-Man-Suggests-Declines-To-Continue_body_Picture_2.png, Forex Strategy: EUR/USD Hanging Man Suggests Declines To Continue

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

Forex-Strategy-EURUSD-Hanging-Man-Suggests-Declines-To-Continue_body_Picture_1.png, Forex Strategy: EUR/USD Hanging Man Suggests Declines To Continue

4 Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, FXCM

Follow David on Twitter: @Davidde

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

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