EUR/USD Piercing Line Candlestick Formation Yields Intraday Recovery
- EUR/USD Technical Strategy: Sidelines Preferred
- Dojidemonstrates indecision amongst traders near 1.3600
- Piercing Line pattern on four hour chart set up a bounce
EUR/USD traders remain indecisive near the critical 1.3600 handle, as denoted by a Dojicandlestick on the daily. However, with a bearish reversal pattern absent, a complete shift in sentiment looks doubtful. A correction is likely to be met by buying support at 1.3600.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; a Harami candlestick pattern delivered at an intraday dip for EUR/USD, after the pair failed to breach the 1.3665 mark. Following a push off support at 1.3585, a Piercing Line pattern is hinting at a possible recovery. However, with resistance resting nearby at 1.3665, the extent of further gains may be limited.
EUR/USD: Piercing Line Prompts Bulls To Return
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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