EUR/USD Key Reversal Signal Shifts Risks To 1.2500
- EUR/USD Technical Strategy: Pending Short
- Bearish Engulfing Pattern Casts Risks Lower
- Key Reversal Signals Lacking In Intraday Trade
EUR/USD’s about face has left a Bearish Engulfing formation in its path. The key reversal candlestick may herald a revisit of the 1.2500 lows if confirmed by a successive down-session. A climb over the 1.2755 hurdle would be required to negate a bearish bias.
EUR/USD: Slide Below 1.2620 To Open 1.2500 With A Bearish Pattern In Tow
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals a void of bullish reversal signals which places a question mark over a corrective bounce. However, given the proximity to intraday support, a downside break would be preferred before adopting fresh short positioning.
EUR/USD: Lacking Bullish Signals In Intraday Trade
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.