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EUR/USD Bulls Return As Candlesticks Signal Potential Recovery

EUR/USD Bulls Return As Candlesticks Signal Potential Recovery

2014-04-17 10:57:00
David de Ferranti, Currency Analyst
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Talking Points

  • 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 making another run on the 1.3840 mark following a couple of Doji formations near key support at 1.3800. The candlesticks suggest some hesitation amongst the bears, which may be the precursor for a continued recover. A daily close above 1.3840 could open further gains to the psychologically-significant 1.3900 handle.

EUR/USD: Doji Signals Potential Bounce

EURUSD-Bulls-Return-As-Candlesticks-Signal-Potential-Recovery_body_Picture_3.png, EUR/USD Bulls Return As Candlesticks Signal Potential Recovery

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 May Continue Following Harami Pattern

EURUSD-Bulls-Return-As-Candlesticks-Signal-Potential-Recovery_body_Picture_2.png, EUR/USD Bulls Return As Candlesticks Signal Potential Recovery

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

EURUSD-Bulls-Return-As-Candlesticks-Signal-Potential-Recovery_body_Picture_1.png, EUR/USD Bulls Return As Candlesticks Signal Potential Recovery

Weekly Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, FXCM

Follow David on Twitter: @Davidde

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