EUR/USD Downside Risks Remain In Absence of Key Reversal Candlesticks
- EUR/USD Technical Strategy: Shorts Preferred
- Vulnerable With Void of Bullish Candles In Sight
- Close Below 1.2660 To Open Run On 1.2250
EUR/USD has resumed its descent with a lack of reversal candlesticks warning of further weakness for the pair. The crawl beneath the 1.2650 floor may set the stage for an extended decline to the late August 2012 low at 1.2250. Whereas a climb over the 1.2650 hurdle would be required to warn of a base.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Piercing Line pattern on the four hour chart failed to find follow-through. This suggests the bears remain in control of the Euro and may attempt to push the pair back to intraday buying support at 1.2570.
EUR/USD: Bullish Signal Invalidated In Intraday Trade
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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