EUR/USD Preps For Next Leg Lower Amid Absence of Bullish Candlesticks
- EUR/USD Technical Strategy: Shorts Preferred
- Daily Close Below 1.2850 May Open Next Leg Lower
- Void of Bullish Candlesticks Casts Risks Lower
EUR/USD has cleared its range-bottom alongside a void of bullish signals. This in turn suggests the common currency may be set to take its next lower towards the July 2013 lows near 1.2755. A daily close back above the 1.2850 barrier would be required to negate a near-term bearish technical bias.
EUR/USD: Eyes 1.2755 Following Clearance Of Range-Bottom
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart paints a less compelling picture than the daily. Buying interest appears to have been renewed in intraday trade at the 1.2820 mark. Yet an absence of key reversal signals casts some doubt on the potential for sustained recovery over the session ahead.
EUR/USD: Intraday Recovery Questionable Amid Void of Bullish Patterns
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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