Talking Points
- EUR/USD Technical Strategy: Shorts Preferred
- Evening Star Emerges Following Test of 1.3440
- Bullish Patterns Lacking, Suggesting Further Falls
EUR/USD’s woes may be set to persist with an Evening Star formation in its wake. While the candlestick pattern generally signals a potential top following a prevailing uptrend, in this case it may suggest sustained selling pressure. This puts the nearby floor at 1.3320 in focus. A daily close above 1.3440 would be required to invalidate a bearish bias at this stage.
EUR/USD: Faces Sustained Selling Pressure
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Drilling down to the four hour chart; a Harami pattern was initially met with little enthusiasm from traders, yet eventually saw the Euro edge lower. A Hammer formation appears to be emerging in intraday trade, yet would not warn of a recovery unless confirmed by a successive up period. Clearance of the nearby 1.3370 hurdle would also likely be required to yield any sustained gains.
EUR/USD: Hammer Awaits Confirmation Near Noteworthy Resistance
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.
