EUR/USD Piercing Line Candlestick Pattern May Fail To Stir The Bulls
- EUR/USD Technical Strategy: Shorts Preferred
- Piercing Line Pattern Emerges, Yet Follow-Though May Be Limited
- Selling Into Rallies Preferred As Core Downtrend Remains Intact
EUR/USD’s minor rebound has yielded a Piercing Line pattern on the daily. Yet the key reversal pattern awaits confirmation from a successive up-day before being validated. Amid the context of sustained downtrend a bounce would be seen as corrective and may present fresh selling opportunities.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart offered an early indication of an intraday recovery for the Euro. An Inverted Hammer formation near 1.2867 suggested the bulls were set to retake the 1.2900 handle. Yet the emergence of an Evening Star pattern warns that upside momentum is already fading for the currency.
EUR/USD: Intraday Recovery Stalls As An Evening Star Rises
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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