EUR/USD Hanging Man Warns Of Deeper Setback Towards 1.2620
- EUR/USD Technical Strategy: Sidelines Preferred
- Hanging Man Emerges After Retreat From 1.2850
- Dark Cloud Cover On H4 Offered Early Warning
EUR/USDhas continued a cautious retreat after a Hanging Man signaled a return of the bears near 1.2850. The reversal formation has received confirmation from a successive down-period, which warns of a deeper setback to the recent lows near 1.2620 ahead of 1.2500. However, traders should be mindful the pair is setting a series of higher highs and higher lows, the basic definition of an uptrend.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Dark Cloud Cover pattern on the four hour chart offered an early warning signal of a potential pullback in intraday trade. With bullish reversal signals seemingly lacking a recovery over the session ahead is questionable.
EUR/USD: Dark Cloud Cover Offers Precursor To Intraday Retreat
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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