EUR/USD Recovery Stumbles As Bullish Pattern Invalidated
- 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.
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
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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