EUR/USD Doji Suggests Hesitation From The Bulls Near 1.3900
- EUR/USD Technical Strategy: Shorts Preferred
- Doji suggests hesitation from the bulls near the critical 1.3900 handle
- Bears returned in intraday trade post a Dark Cloud Cover formation
EUR/USD’s consolidation between 1.3780 and 1.3900 has persisted with the most recent pullback from the range-top prompting the formation of a Dojicandlestick. The formation suggests signs of indecision from traders and the potential for a pull-back towards the range-bottom.
Traders should be mindful of the potential for a surprise US Non-Farm Payrolls reading in the coming hours to spark significant volatility for US Dollar based pairs. The release of the figures will be covered live in DailyFX Plus.
EUR/USD: Prices Hold Below 1.3900 Following Doji Candlestick
Daily Chart - Created Using FXCM Marketscope 2.0
The recent retracement for EUR/USD was foreshadowed by a Dark Cloud Cover pattern in intraday trade. The signal suggests the potential for an extended pullback towards the 1.3785 mark.
EUR/USD: Gives Back Gains Following Dark Cloud Cover Pattern
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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