EUR/USD Shooting Star Candlestick In Intraday Trade Warns of Correction
- EUR/USD Technical Strategy: Pending Short
- Daily close below support at 1.3500 to open 1.3400
- Absence of bullish signals casts doubt on potential bounce
The bulls appear unwilling to relinquish their grip on EUR/USD as the common currency holds above the 1.3500 handle. While several short body candles are suggestive of indecision amongst traders, they do little to suggest a more meaningful bounce at this stage. A daily close below support at 1.3500 would help signal conviction amongst the bears and open up the next psychologically-significant level at 1.3400.
Daily Chart - Created Using FXCM Marketscope 2.0
The pullback from 1.3585 in recent trading has resulted in a Shooting Star candlestick pattern on the 4 hour chart. The key reversal signal suggests the potential for a continued retreat, with buyers likely to emerge at the 1.3520 mark.
EUR/USD: Shooting Star Suggests Retreat To Continue
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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