EUR/USD Recovery On The Cards Following Doji Candlestick Near 1.3800
- EUR/USD Technical Strategy: Sidelines Preferred
- Emergenceof another Doji on the daily suggests a potential recovery
- Harami in intraday trade reinforces potential for a bounce
EUR/USD is recovering some lost ground in early European trading, which follows on from a Doji candlestick near key support at 1.3800. The signal suggests some hesitation amongst the bears, which may be the precursor for a bounce. A break above nearby resistance at 1.3840 could open further gains to 1.3900.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to examine intraday price action; the Dark Cloud Cover pattern noted in recent candlesticks reports delivered declines for EUR/USD to support at 1.3785. With a Harami now having formed and a bearish reversal signal missing, a continued recovery looks possible.
EUR/USD: Recovery To Continue Following Harami Pattern
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 for a potential decline in EUR/USD over the longer term.
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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