EUR/USD Doji Signals Trader Hesitation Ahead of ECB
- EUR/USD Technical Strategy: Sidelines Preferred
- Bearish Engulfing pattern on four hour chart resulted in intraday dip
- Lack of key reversal signal on the daily precludes correction at this stage
EUR/USDhas retreated from noteworthy resistance at 1.3950 in recent trading. However we’re yet to see a bearish reversal pattern emerge on the daily which would warn of a more significant correction. At this stage buyers remain prepared to support prices at the psychologically-significant 1.3900 handle.
Traders should note the upcoming ECB rate decision is likely to spark significant volatility for the Euro, which may negate technical signals offered.
EUR/USD: Bulls Pause Near 2014 High
Daily Chart - Created Using FXCM Marketscope 2.0
As noted in yesterday’s candlesticks report, the Bearish Engulfing pattern on the four hour chart hinted at an intraday dip back to the 1.3900 handle. The emergence of a Doji formation now suggests sellers are hesitant to drive prices lower.
EUR/USD: Bearish Engulfing Pattern Sparks Intraday Dip
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.