EUR/USD Recovers Lost Ground Following Bullish Reversal Pattern
- EUR/USD Technical Strategy: Sidelines Preferred
- Hammer Candlestick Offered Bullish Reversal Signal
- Daily Close Above 1.3440 Required To Open 1.3500
EUR/USD’s recovery may continue following the confirmation of a Hammer candlestick formation on the daily. A close above the nearby 1.3440 barrier would open a run on the psychologically-significant 1.3500 handle. However, some skepticism for further gains may be warranted given the prevailing trend remains to the downside.
EUR/USD: Hammer Yields Corrective Bounce
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Drilling down to the four hour chart; a Harami pattern has failed to yield a meaningful correction for EUR/USD. Several ensuing short body candles suggest noteworthy deliberation amongst traders, which does little to confirm a technical bias for the pair.
EUR/USD: Short Periods Highlight Indecision Above 1.3400
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Market Analyst, DailyFX
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