EUR/USD Targets 1.3500 In Absence of Key Reversal Candlestick
- EUR/USD Technical Strategy: Shorts Preferred
- Absence of bullish candlestick opens further declines
- Falls likely to be met by buying support near 1.3500
As suggested in the most recent EUR/USD candlesticks report; the Euro was set for further declines in the absence of a bullish reversal pattern. While the pair staged a small recovery to support-turned-resistance at 1.3670, the emergence of another Harami pattern suggests the bears have regained control of prices. Further falls may encounter buying support at the psychologically-significant 1.3500 handle.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to examine the four hour chart; a Dark Cloud Cover candlestick pattern indicated the bears were wrestling control of prices following a test of 1.3665. Following the ensuing break below buying support at 1.3585 we’re yet to see a bullish reversal pattern emerge. This suggests the potential for a continued correction to 1.3500.
EUR/USD: Targeting 1.3500 In Absence of Bullish Pattern
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.