EUR/USD Hammered As Harami Delivers Drop To Notable Support
- EUR/USD Technical Strategy: Shorts Preferred
- Harami paved the way for a retreat to 1.3600
- Bounce doubtful in absence of reversal patterns
As noted in recent candlesticks reports EUR/USD was primed for a pullback following a Harami pattern on the daily near noteworthy resistance at 1.3700. Confirmation from a second successive down-day helped to validate the signal and opened a decline to former resistance-turned-support at 1.3590. A daily close below the support level would suggest enough conviction from the bears to achieve the 1.3500 handle.
EUR/USD: Harami Heralded Retreat
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Drilling down to the four hour chart; candlestick reversal signals are notably absent for the Euro. While a bounce looks doubtful at this point a break below support at 1.3585 would likely afford a better entry for new short positions.
EUR/USD: Reversal Signals Lacking In Intraday Trade
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Market Analyst, DailyFX
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