EUR/USD To Extend Declines With Bullish Signals Lacking
- 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. Now the appearance of a Dragonfly Doji suggests the bears may be hesitating near key support at 1.3500/5. With resistance hanging nearby at 1.3585, a recovery over the session ahead may prove limited.
EUR/USD: Bears Step Back Ahead of Key Support
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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