EUR/USD Struggles Sub 1.2700 As A Doji Denotes Indecision
- EUR/USD Technical Strategy: Sidelines Preferred
- Doji Does Little To Confirm Piercing Line Pattern
- Awaiting Cues On H4 Following Sideways Drift
EUR/USD’s recent Doji formation does little to inspire confidence in the reversal signal offered by a Piercing Line pattern. Alongside the sustained presence of a downtrend sellers sitting nearby at the 1.2700 handle a recovery may prove a difficult feat. Further, the Euro’s path lower over recent months has been littered with reversal signals that have failed to generate much follow-through.
EUR/USD: Recovery Questionable Following Doji Formation
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart has been plagued by choppy price action over the past 24 hours. This has left a void of cues from candlestick analysis and suggests awaiting a more constructive setup may be prudent.
EUR/USD: Intraday Drift Leaves Clearer Cues Desired
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
To receive David’s analysis directly via email, please sign up here.
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.