EUR/USD Downside Risks Remain As Hammer Candlestick Disdained
- EUR/USD Technical Strategy: Shorts Preferred
- Absence Of Bullish Candles Opens Further Declines
- Close Below 1.2755 To Open Run On 1.2660
EUR/USDhas seemingly looked past a Hammer formation on the daily as the pair resumes its descent. Within the confines of a sustained downtrend the bullish candlestick formation would require a successive up day and close above 1.2850 to signal a shift in sentiment. In the absence of such a scenario the risks are skewed to the downside with the spotlight left on the November 2012 low near 1.2660.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart highlights some hesitation near the 1.2700 handle as denoted by a Doji formation. Yet an absence of classic reversal candlesticks casts doubt on the potential for a 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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