EUR/USD Hammer Hints At A Bounce In Intraday Trade
- EUR/USD Technical Strategy: Shorts Preferred
- Haramioffered bearish signal near the 1.3950 mark
- Hammer in intraday trade hints at a possible bounce
As noted in yesterday’s candlesticks report the Euro was primed for a drop towards the 1.3670 level of support, which followed the emergence of a Harami pattern near resistance at 1.3950. While a second Harami appears to be forming in intraday trade, the candle is yet to close, which would be required for the bullish to be valid.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to examine intraday price action on the four hour chart; there is some evidence that the EUR/USD bulls are staging a return. The Hammer formation near 1.3692 hints at a possible bounce for the pair in the session ahead. However, gains may be limited, given resistance remains at the nearby 1.3745 mark.
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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