EUR/USD In A Precarious Position With Void Of Key Reversal Signals
- EUR/USD Technical Strategy: Shorts Preferred
- Recovery Doubtful In Absence of Bullish Patterns On The Daily
- H4 Chart Offers Contrasting Picture As Key Reversal Signal Emerges
EUR/USD may be set to extend its recent declines with key reversal patterns lacking on the daily chart. 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.
EUR/USD: Faces Further Weakness With Key Reversal Patterns Lacking
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Intraday support for the pair may have been found at 1.3240 based on the four hour chart below. While a Bullish Engulfing formation is emerging, it awaits the close of the current candle and successive up-period to be validated. An intraday recovery is likely to be met by selling pressure at the psychologically-significant 1.3300 hurdle.
EUR/USD: Bullish Engulfing Pattern May Hint At Intraday 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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