EUR/USD Nears 1.3100 Floor With Bullish Candlesticks Absent
- EUR/USD Technical Strategy: Shorts Preferred
- Recovery Questionable In Absence of Bullish Signals
- Selling Into Rallies Preferred With Downtrend Intact
EUR/USD has maintained its downward trajectory after a bullish reversal pattern failed to find confirmation on the daily. This leaves the spotlight cast on the September lows at 1.3100. A push past the nearby barrier would set the scene for a run on the psychologically-significant 1.3000 handle.
EUR/USD: Bullish Engulfing Pattern Fails To Find Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals a similar narrative to the daily. A void of bullish reversal candlesticks casts doubt on a recovery. However, an ensemble of Dojis near the 1.3115 mark suggests some hesitation from the bears. Given the context afforded by the daily clearance of the 1.3100 handle would be preferred before looking at new short positions.
EUR/USD: Dojis Indicate Indecision Near The 1.3115 Barrier
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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