EUR/USD Probes Above 1.2500 As A Hammer Awaits Confirmation
- EUR/USD Technical Strategy: Pending Short
- Hammer Formation Awaiting Confirmation
- Piercing Line On H4 Offered Early Bounce Hint
EUR/USD’s intraday recovery has left a Hammer formation in its path. Critically, the key reversal signal awaits validation from a successive up-period to be confirmed and to suggest a more sustained advance. A close above the psychologically-significant 1.2500 handle would further hint at a base. Whereas a close below the barrier would skew the risks to the downside towards the late August ’12 lows near 1.2250.
EUR/USD: Hammer Candlestick Emerges After Intraday Recovery
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Piercing Line pattern on the four hour chart offered an indication that the bears were losing their grip on prices. With bearish formations now seemingly lacking a correction over the session ahead is questionable. Yet the scope for an advance may also be limited given the proximity of prices to the nearby 1.2550 ceiling.
EUR/USD: Piercing Line 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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