EUR/USD Left Wanting For Reversal Signals After Cataclysmic Drop
- EUR/USD Technical Strategy: Shorts Preferred
- Recovery Questionable In Absence of Bullish Signals
- H4 Doji Denotes Hesitation Near Intraday Support
EUR/USD’s cataclysmic decline has left an absence of bullish reversal signals in its wake. Within the context of a core downtrend this casts some doubt over the potential for a sustained recovery for the pair. A daily close below the 1.2920 hurdle would set the scene for a run on the July 2013 low near 1.2755.
EUR/USD: Awaiting Turning Signal To Build Recovery Hopes
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals a similar narrative to the daily with a void of reversal candlesticks suggesting a strong recovery may prove difficult. However, a Doji formation denotes indecision from traders near the 1.2920 mark. This suggests a corrective bounce over the session ahead should not be precluded.
EUR/USD: Left Wanting For Bullish Reversal Formations
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.