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EUR/USD Descent Stalls As A Doji Candlestick Highlights Hesitation

EUR/USD Descent Stalls As A Doji Candlestick Highlights Hesitation

David de Ferranti, Currency Analyst

Talking Points

  • EUR/USD Technical Strategy: Sidelines Preferred
  • Bears Lose Steam As A Doji Candlestick Indicates Indecision
  • Recovery Questionable Amid Absence Of Bullish Signals

EUR/USD has managed to regain its footing as a Doji candlestick indicates indecision from traders. Further, a Morning Star formation appears to be taking shape. However, the pattern requires the close of the current candle and a successive up-day in order to suggest a base may have formed. Until this arises a sustained recovery remains questionable.

Traders should note that the upcoming ECB meeting may catalyze significant volatility for the Euro which could negate technical signals offered.

EUR/USD: Bears Take A Breather Following A Doji On The Daily

EUR/USD Descent Stalls As A Doji Candlestick Highlights Hesitation

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

A medley of short body candles and Doji formations indicated that the Euro was losing downside momentum in intraday trade. Sellers appear intent on capping the currency’s recovery at the 1.2665 mark. Yet amid an absence of intraday reversal signals a breakout could open a retest of the 1.2710 ceiling.

EUR/USD: Dojis Highlighted Hesitation Near 1.2570

EUR/USD Descent Stalls As A Doji Candlestick Highlights Hesitation

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

By David de Ferranti, Currency Analyst, DailyFX

Follow David on Twitter: @Davidde

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