EUR/USD Climb Over 1.2500 Offers Bullish Signal Confirmation
- EUR/USD Technical Strategy: Flat
- Hammer Formation Receives Confirmation
- Dojis Signal Indecision In Intraday Trade
EUR/USD’s about face has helped confirm a Hammer candlestick, leaving the pair with a bullish technical signal. Yet the scope for further gains may be capped by nearby resistance near the 1.2620 barrier. A close back below the 1.2500 barrier would be required to skew the risks to the downside towards the late August ’12 lows near 1.2250.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A string of Doji formations on the four hour chart suggests hesitation from the bulls to lead the pair higher. However, a void of clear reversal signals casts doubt on a correction over the session ahead. This leaves clearer cues from candlesticks desired to suggest a technical bias.
EUR/USD: Dojis Denote Indecision In Intraday Trade
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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