EUR/USD Vulnerable After Bullish Pattern Left Lacking Confirmation
- Strategy: Short, Stop: 1.2500 (Close), Target: 1.2270
- Piercing Line Candlestick Pattern Denied Validation
- Open To Intraday Declines In Absence Of Bullish Patterns
EUR/USD’s retreat from the 1.2500 barrier has left a Piercing Line pattern lacking confirmation. Alongside the presence of a short-term downtrend the pair may be set to revisit the recent lows near 1.2360. Beneath which would put the August 2012 low at 1.2250 in sight. A close above 1.2500 would be required to negate a short-term bearish technical bias.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour timeframe offered an indication of indecision in the form of a Doji near 1.2490. With bullish reversal formations lacking the Euro may be in line for a further slide towards intraday support near 1.2365.
EUR/USD: Doji Signaled Indecision At 1.2490
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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