EUR/USD Eyes 1.2500 With Bullish Reversal Signals Lacking
- EUR/USD Technical Strategy: Sidelines Preferred
- Selling Reignited In The Wake Of A Hanging Man
- Bullish Reversal Signals Absent In Intraday Trade
EUR/USDhas extended its declines with a Hanging Man formation in the rearview mirror. With bullish reversal signals absent a close beneath the 1.2620 barrier would open a descent on 1.2500. Yet a clean run lower is likely to prove difficult given recent ‘messy’ price action.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart tells a similar narrative to the daily. An absence of bullish candlestick patterns suggests the potential for further weakness. Clearance of the 1.2600/20 region would pave the way for a push towards the 1.2500 floor.
EUR/USD: Intraday Recovery Questionable Amid Void Of Bullish Candlesticks
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.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.