EUR/USD Bearish Engulfing Pattern Emerges In Intraday Trade
- EUR/USD Technical Strategy: Flat
- Bearish Engulfing pattern on four hour chart awaits confirmation
- Evening Starformation on the weekly offers ominous warning
EUR/USD has powered through several key resistance levels in recent trading, which has likely caught the bears off-guard. With a reversal signal still missing on the daily, further gains may be possible with sellers likely to emerge the next psychological level at 1.3900.
EUR/USD: Break above 1.3800 Opens Further Gains
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to examine intraday price action, the presence of a Bearish Engulfing pattern is noteworthy. However, the key reversal signal has yet to receive confirmation to be validated, which at this stage precludes a bearish bias for the pair.
EUR/USD: Bearish Engulfing Pattern Awaits Confirmation
4 Hour Chart - Created Using FXCM Marketscope 2.0
Finally, taking a look at some broader context provided the weekly chart; the Evening Star formation that has emerged shy of the key 1.4000 is a notable warning signal of further declines ahead. The pattern has received confirmation from a successive down week which raises the likelihood of an eventual correction towards the 1.3480 support level.
EUR/USD: Evening Star Receives Confirmation
Weekly 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.