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EUR/USD Daily Close Below Support To Offer New Short Entries

EUR/USD Daily Close Below Support To Offer New Short Entries

2014-05-22 08:00:00
David de Ferranti, Currency Analyst
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Talking Points

  • EUR/USD Technical Strategy: Pending Short
  • Hammer needs confirmation near key support
  • Daily close below 1.3670 to open further declines

EUR/USD continues to tease traders near critical support at 1.3670 with the Hammer formation on the daily suggesting the bulls are not prepared to relinquish their grip on the pair just yet. However, before suggesting a potential bounce back to 1.3780, the reversal signal needs to see confirmation from a successive up-day. A daily close below 1.3670 would signal strong conviction amongst the bears and open up the next noteworthy level of support at 1.3480.

EUR/USD: Bullish Signal Lacks Confirmation Near Key Support.

EUR/USD Daily Close Below Support To Offer New Short Entries

Daily Chart - Created Using FXCM Marketscope 2.0

Drilling down to examine intraday price action on the four hour chart; a Doji formation suggests signs of hesitation amongst traders near 1.3640. However, reversal signals are seemingly absent, which precludes a bounce at this stage.

EUR/USD: Bounce In Doubt With Candlestick Signal Missing

EUR/USD Daily Close Below Support To Offer New Short Entries

4 Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, DailyFX

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