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EUR/USD Doji Ensemble Highlights Hesitation At Key Barrier

EUR/USD Doji Ensemble Highlights Hesitation At Key Barrier

2014-09-03 10:57:00
David de Ferranti, Currency Analyst
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Talking Points

  • EUR/USD Technical Strategy: Shorts Preferred
  • Hesitation Persists As Highlighted By Dojis Near 1.3100
  • Recovery Questionable In Absence of Bullish Signals

EUR/USDremains at a crossroads as parade of Dojis highlights indecision near the critical 1.3100 floor. A daily close below the hurdle would set the scene for a run on the psychologically-significant 1.3000 handle.

EUR/USD: Doji Highlights Indecision Near Critical Support

EUR/USD Doji Ensemble Highlights Hesitation At Key Barrier

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

The four hour chart reveals a similar narrative to the daily with several short body periods denoting hesitation from traders. Yet a void of bullish reversal candlesticks casts doubt on a recovery at this stage. Given the context afforded by the daily clearance of the 1.3100 handle would be preferred before looking at new short positions.

EUR/USD: Absence of Reversal Patterns Casts Doubt On A Corrective Bounce

EUR/USD Doji Ensemble Highlights Hesitation At Key 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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