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.
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
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