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EUR/USD Recovery Stumbles As Bullish Pattern Invalidated

EUR/USD Recovery Stumbles As Bullish Pattern Invalidated

David de Ferranti, Currency Analyst

Talking Points

  • EUR/USD Technical Strategy: Shorts Preferred
  • Bullish Reversal Pattern Invalidated As Selling Pressure Remains
  • Selling Into Rallies Preferred As Core Downtrend Remains Intact

EUR/USD’s Piercing Line pattern failed to find confirmation, leaving a void of bullish signals for the pair. Amid the context of sustained downtrend this leaves shorts preferred with the potential for a break of 1.2850 to open a knock on 1.2755.

EUR/USD: Downside Risks Remain As Traders Look Past Piercing Line Pattern

EUR/USD Recovery Stumbles As Bullish Pattern Invalidated

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

The four hour chart offers few directional signals at this point. A medley of short body candles alongside a Doji formation indicates indecision from traders. Given the backdrop provided by the daily, selling on a push past the intraday lows is preferred.

EUR/USD: Indecision Sees Consolidation Continue

EUR/USD Recovery Stumbles As Bullish Pattern Invalidated

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

By David de Ferranti, Currency Analyst, DailyFX

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