EUR/USD May Face Further Falls With Bullish Candlesticks Left Lacking
- EUR/USD Technical Strategy: Shorts Preferred
- Recovery Doubtful In Absence of Bullish Patterns
- H4 Chart Offered An Early Warning of A Pullback
EUR/USD’s woes may be set to continue following a leap over critical support leaving an absence of bullish reversal patterns. This may leave the pair vulnerable to a sustained descent on the 1.3100 handle (the September 2013 low). A daily close back above the 1.3340 barrier would be required to negate a bearish technical bias.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart offered an advance warning of EUR/USD’s intraday retreat. A Bearish Engulfing formation signaled the potential for a retest of the recent range lows. The absence of a bullish reversal signals casts doubt over the potential for a recovery over the session ahead.
EUR/USD: Bearish Candlestick Pattern Indicated Correction Potential
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Market Analyst, DailyFX
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