EUR/USD Marches Higher As Doji Does Little To Discourage Bulls
- EUR/USD Technical Strategy: Sidelines Preferred
- Lack of reversal signal suggests gains may continue
- 1.3900 likely to act as noteworthy resistance
EUR/USD continues to march towards the critical 1.3900 handle following a break above resistance at 1.3840. While a Long-Legged Doji candlestick on the daily signals some hesitation amongst the bulls it is not enough to suggest a correction at this stage.
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. Some interim resistance at 1.3875 may prompt some sellers to emerge during the session ahead.
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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