EUR/USD Morning Star Rises Following Rebound 1.2620 Floor
- EUR/USD Technical Strategy: Sidelines Preferred
- Morning Star Pattern Emerges Following Rebound
- H4 Chart Suggests A Cautious Return From The Bulls
EUR/USD’s rebound from the 1.2620 floor has left a lopsided Morning Star formation in its wake. The bullish reversal signal awaits confirmation from a successive up-day, which if received may herald a retest of 1.2755. Yet amid the ‘messy’ price action that has plagued the pair over recent weeks the potential for further upside follow-through may be limited.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A parade of short body candles on the four hour chart suggests some reluctance from the bulls to lead the Euro higher. However, an absence of bearish reversal candlesticks casts doubt on the prospect of a pullback over the session ahead. A leap above the 1.2705 ceiling would be required to open a run higher towards the 1.2886 barrier.
EUR/USD: Intraday Correction Questionable Amid Void Of Bearish Candlesticks
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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