EUR/USD Retreats As Key Reversal Pattern Left Lacking Confirmation
- EUR/USD Technical Strategy: Shorts Preferred
- Bullish Engulfing Fails To Find Follow-Through
- Selling Into Rallies Preferred With Core Downtrend Intact
EUR/USD’s retreat has left a Bullish Engulfing pattern lacking confirmation and void of key reversal signals. After having filled the bulk of its weekend gap in intraday trade the spotlight is turned back to the 1.3100 floor.
EUR/USD: Bullish Engulfing Pattern Fails To Find Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Drilling down to the four hour chart a narrow range is made more evident. Turning points have been signaled by key reversal patterns including most recently an Evening Star formation near 1.3240. Yet a void of bullish candlesticks near 1.3152 casts some doubt on the potential for an intraday recovery.
EUR/USD: Candlestick Patterns Signal Turning Points Within Intraday Range
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.