Forex Strategy: EUR/USD Falls Further Following Bearish Reversal Signal
- EUR/USD Technical Strategy: Shorts Preferred
- Hanging Man receives confirmation suggesting correction to continue
- Short-term gains may be limited in absence of bullish reversal signal
The Hanging Man candlestick formation on the daily has played out in extended declines for EUR/USD. While buyers appear to be supporting prices at the 38.2% Fib Retracement level (1.3765), a bullish reversal signal is lacking, suggesting further falls may be possible.
EUR/USD: Hanging Man Receives Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; intraday gains for EUR/USD may prove limited given a bullish reversal pattern is lacking and resistance continues to hang overhead at 1.3805.
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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