EUR/USD Eyes 1.3900 With Bearish Reversal Signal Absent
- EUR/USD Technical Strategy: Sidelines Preferred
- Lack of reversal signal suggests gains to continue
- 1.3900 likely to act as noteworthy resistance
EUR/USD looks likely to test the critical 1.3900 handle following a break above resistance at 1.3840 with a bearish reversal signal notably absent on both the daily and four hour timeframes.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to examine intraday price action; the Bullish Engulfing pattern on the 4 hour chart heralded the return of the bulls near key support at 1.3785.
EUR/USD: Recovery May Continue Following Bullish Engulfing Pattern
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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