EUR/USD Downside Risks Remain In Absence of Reversal Candlesticks
- EUR/USD Technical Strategy: Shorts Preferred
- Bullish Engulfing Pattern Fails To Find Confirmation
- Break Of Nearby Support To Open 1.3100 Target
The Euro is set for a make-or-break moment on a test of the recent lows near 1.3320 with bullish reversal signals absent. Given the proximity to nearby buying support at 1.3320 new shorts may be better served on a downside break. This would set the stage for a push to the September 2013 lows near 1.3100.
EUR/USD: Bullish Engulfing Formation Fails To Find Follow-Through
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Drilling down to the four hour chart; a Hammer formation near 1.3340 offered an indication for an intraday recovery for EUR/USD. However, since resuming its descent there is glaring absence of reversal signals which suggests a recovery for the pair over the session ahead may prove difficult.
EUR/USD: Hammer Fails To Sustain Recovery
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Market Analyst, DailyFX
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