EUR/USD Set For Further Falls With Bullish Signal Missing
- EUR/USD Technical Strategy: Shorts Preferred
- Doji on the daily offered early indication of potential dip
- Dark Cloud Cover reinforces bearish technical bias
The Euro bears have regained their grip on prices in recent trading, which follows on from a Doji candlestick that signaled some indecision amongst traders near 1.3900. While the pair has found some reprieve from further declines near the 1.3800 handle, signs of a bullish reversal are absent at this stage, which casts doubt over the potential for a bounce.
EUR/USD: Bears Take Control Post Doji Formation
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to examine intraday price action, a Dark Cloud Cover pattern also offers a noteworthy warning of further declines. The signal has received confirmation from a successive down period, and similar to the daily, suggests a potential move to support at 1.3800/05.
EUR/USD: Dark Cloud Cover Offers Ominous Signal
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 another notable warning signal.
EUR/USD: Evening Star Remains On The Radar
Weekly Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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