Talking Points
- EUR/USD Technical Strategy: Sidelines Preferred
- Bullish Engulfing candlestick suggests run on 1.3900 to come
- Break above range-top needed to push prices to 1.3935/50
EUR/USD’s consolidation between 1.3780 and 1.3900 has persisted with the most recent bounce off the range-bottom prompting the formation of a Bullish Engulfing candlestick pattern. While the signal typically foreshadows a reversal following a downtrend the pattern may be an indication the pair may be set to make another run on 1.3900.
EUR/USD: 1.3900 In Sight Following Bullish Engulfing Pattern
Daily Chart - Created Using FXCM Marketscope 2.0
Similarly, a Bullish Engulfing pattern in intraday trade has helped propel prices higher. With a bearish reversal signal seemingly absent, a push above 1.3900 could lead to an advance on the next definitive level of resistance at 1.3935.
EUR/USD: Critical Support At 1.3785 Prompts Reversal
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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