EUR/USD Dragonfly Doji Denotes Indecision Ahead of ECB Decision
- EUR/USD Technical Strategy: Shorts Preferred
- Dragonfly Doji Suggests Hesitation Amongst The Bears
- Reversal Pattern On H4 Suggested An Intraday Bounce
EUR/USD has managed to stage a small recovery yielding a Dragonfly Doji on the daily. The candlestick pattern suggests indecision from traders, yet does not indicate a complete shift in sentiment at this stage. With a congestion zone looming overhead (1.3400-1.3440) sustained gains are questionable.
Traders should note the upcoming ECB decision holds the potential to spark significant volatility that could void technical signals offered.
EUR/USD: Dragonfly Doji Denotes Hesitation Near 1.3400
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Drilling down to the four hour chart; a Bullish Engulfing pattern sub 1.3370 offered an early indication of an intraday bounce for EUR/USD. However, several short periods do little to suggest the potential for a climb over the 1.3400 handle over the session ahead.
EUR/USD: Reversal Pattern Offered Indication Of An Intraday Bounce
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Market Analyst, DailyFX
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