EUR/USD Bounces Off Key Support As Bullish Engulfing Pattern Forms
- EUR/USD Technical Strategy: Sidelines Preferred
- Test of critical support prompts bulls to return
- 1.3900 likely to act as noteworthy resistance
EUR/USD has done an about-face in recent trading. After probing below 1.3780 earlier in the session, the bulls have returned near the critical level of support. However, further gains may prove limited given the 1.3900 handle continues to offer noteworthy resistance for the pair.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to examine intraday price action; a Bullish Engulfing pattern on the 4 hour chart is forming which may herald the return of the bulls once again near key support at 1.3785. An intraday bounce is likely to be met by selling pressure at the 1.3850 mark.
EUR/USD: Critical Support At 1.3785 Prompts Bulls To Return
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here.
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.