EUR/USD Reversal Pattern Fails To Stir The Bulls As Recovery Stalls
- EUR/USD Technical Strategy: Sidelines Preferred
- Bullish Engulfing pattern fails to find follow-through
- Pullback finds some support near 1.3600
The Bullish Engulfing pattern on the EUR/USD daily chart is yet to find much follow-through as the common currency gives back gains above the 1.3600 handle. The pullback during yesterday’s session has prompted a Shooting Star candlestick, which suggests the bears may be looking to stage a return. However with support nearby, the extent of a correction may be limited. A daily close back below 1.3600 would signal enough conviction amongst traders to open the psychologically-significant 1.3500 level.
Daily Chart - Created Using FXCM Marketscope 2.0
A Harami pattern on the four hour chart offered an early warning of a retreat. Similarly to the daily further declines may be limited by intraday support resting at 1.3585.
EUR/USD: Harami Offered Early Warning Sign
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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