EUR/USD Dark Cloud Cover Emerges On Retreat From 1.2755 Barrier
- EUR/USD Technical Strategy: Sidelines Preferred
- Dark Cloud Cover Returns Near Range-Top
- Range Between 1.2500 and 1.2755 Endures
EUR/USD’s pullback from the 1.2755 barrier has yielded another Dark Cloud Cover candlestick pattern. Yet some skepticism over the signal’s potential to generate a decline is warranted, given recent reversal formations have failed to find much follow-through. A breakout above the 1.2755 ceiling would pave the way for a potential push towards former support-turned-resistance at 1.2850. While in the alternative scenario, a close below the 1.2500 floor would be required to open the next leg lower to the late August 2012 low at 1.2250.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Harami on the four hour chart offered an early indication of a potential pullback for the Euro. A void of bullish reversal patterns flags the potential for a continued retreat to buying interest at the 1.2605 mark.
EUR/USD: Harami Offered Warning Near Intraday Highs
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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