Talking Points
- EUR/USD Technical Strategy: Sidelines Preferred
- Dojisignaled hesitation by the bears near critical support
- Sellers likely to re-emerge at the 1.3700 handle
EUR/USD’s descent has stalled as buyers step in to support the pair at the psychologically-significant 1.3500 handle. A Doji formation on the daily suggests the bears may have run out of steam, yet the absence of a key reversal pattern casts also casts doubt on a recovery. A daily close below 1.3500 would be required to offer a bearish technical bias for the Euro.
EUR/USD: Doji Signals Indecision Near Key Support
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 1.3520. 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.
EUR/USD: Dojis Denote Indecision In Intraday Trade
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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