EUR/USD Bullish Candlestick Formation Delivers Further Gains
- EUR/USD Technical Strategy: Sidelines Preferred
- Rise Continues Following Morning Star Pattern
- Doji On H4 Suggests Fading Upside Momentum
EUR/USDhas tapped the 1.2755 barrier after a Morning Star signaled a return of the bulls. Clearance of the nearby ceiling amid a void of bearish candlesticks would open a revisit of the 1.2850 peak. However, the past several weeks have witnessed a more general consolidation for the pair suggesting further follow-through may be difficult.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Doji on the four hour chart may already be signaling fading momentum from the bulls. However, the candlestick formation is not classed as a key reversal pattern – which in turn casts doubt on a potential correction.
EUR/USD: Doji Signals Hesitation From The Bulls
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.