EUR/USD Recovery Stalls With Dojis Denoting Indecision Drags On
- EUR/USD Technical Strategy: Longs Preferred
- Doji signaled hesitation by the bears near critical support
- Sellers likely to re-emerge at the 1.3700 handle
EUR/USD remains elevated after a Doji on the daily near key support at 1.3590 signaled a potential shift in sentiment amongst traders. However, the close of the most recent candle failed to yield a Morning Star pattern, which leaves key bullish reversal patterns for the pair lacking. Sellers are likely to re-emerge at the psychologically-significant 1.3700 handle.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Drilling down to the four hour chart signs of indecision are in abundance with several Doji patterns evident above 1.3610. However, similarly to the daily chart, the formations are not classed as key reversal signals. This leaves the prospect of a push higher over the session ahead as questionable.
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Market Analyst, DailyFX
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here.
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.