EUR/USD Spotlight On 1.3100 As Confirmation Of Bullish Pattern Fails
- EUR/USD Technical Strategy: Shorts Preferred
- Harami Pattern Fails To Find Confirmation
- Spotlight Remains On The 1.3100 Floor
EUR/USD has resumed its downward trajectory which has negated a bullish reversal pattern on the daily. The Harami formation had signaled the potential for a recovery yet failed to find confirmation from a successive up period. This leaves the risks skewed to the downside and keeps the spotlight on the 1.3100 floor.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
An examination of the four hour chart reveals some intraday buying support at the 1.3185 barrier. While a Harami pattern had hinted at a recovery for the pair, follow-through proved limited. This casts some doubt over the potential for a bounce over the remainder of the session.
EUR/USD: Bulls Uninspired Despite Harami Pattern
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency 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.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.