EUR/USD Doji Ensemble Denotes Reluctance Near Critical Resistance
- Strategy:Short (From 1.2480), Stop: 1.2500 (Daily Close), Target 1: 1.2360, Target 2: 1.2250
- Doji Suggests Reluctance From Traders Sub The 1.2500 Handle
- Bearish Engulfing Pattern Casts Risks Lower In Intraday Trade
EUR/USD’s floundering sub the 1.2500 handle has endured with a pair of Dojis highlighting the hesitation from traders. While not reversal patterns - the proximity of the pair to the nearby resistance level suggests the risks may be skewed lower. This in turn leaves shorts preferred with an initial downside target offered by the 1.2360 floor, which if broken would potentially open a run on the 1.2250 mark.
EUR/USD: Dojis On The Daily Denote Indecision From Traders
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals a choppy consolidation for the Euro in intraday trade. A Bearish Engulfing formation near 1.2510 casts a slightly more negative light than the daily chart offers. This puts the focus on intraday support near 1.2425 over the session ahead.
EUR/USD: Bearish Engulfing Pattern Puts The Focus On Intraday Support
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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