EUR/USD Downside Momentum Fades As Intraday Dojis Signal Indecision
- EUR/USD Technical Strategy: Sidelines Preferred
- Hanging Man Fails To Generate Follow-Through
- Dojis On H4 Suggest A Consolidation Ahead
EUR/USD’s post Hanging Man pullback appears to have lost some momentum. As noted, the pair has recently posted a series of higher highs, and higher lows – the basic definition of an uptrend. In turn this casts some doubt over the potential for downside follow-through from the bearish reversal signal. Buying interest appears evident at the 1.2755 mark, below which would open 1.2620.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A trio of Dojis on the four hour chart highlighted hesitation from the bears near the 1.2750 mark. A more recent Doji suggests further indecision, and may be the precursor to a consolidation over the session ahead.
EUR/USD: Dojis Signaled Fading Downside Momentum
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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