News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
EUR/USD Technical Analysis – Hammer Candle Hints at Bounce

EUR/USD Technical Analysis – Hammer Candle Hints at Bounce

Ilya Spivak, Head Strategist, APAC

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • EUR/USD Technical Strategy: Pending Short
  • Support: 1.3673-90 (61.8% Fib exp., wedge floor), 1.3598 (76.4% Fib exp.)
  • Resistance: 1.3734 (50% Fib exp.), 1.3795 (38.2% Fib exp.)

The Euro may be gearing up for a corrective bounce against the US Dollar after prices produced a Hammer candlestick. A reversal above resistance at 1.3734, the 50% Fibonacci retracement, targets the 38.2% level at 1.3795. Support is now in the 1.3673-92 area, marked by the 61.8% Fibonacci retracement and the bottom of a rising wedge chart formation in play since late last year. A break downward on a daily closing basis initially exposes the 76.4% level at 1.3598.

A Hammer candle represents indecision rather than an actionable trade signal. We will continue to stand aside for now, waiting for any corrective upside move to offer a selling opportunity in line with our long-term fundamental outlook.

Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!

EUR/USD Technical Analysis – Hammer Candle Hints at Bounce

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES