(MENAFN- DailyFX) DailyFX.com -
Talking Points
-
EUR/USD Technical Strategy: Shorts Preferred
-
Hammer To Offer Bullish Signal If Confirmed
-
Downside Risk Remains With 1.3320 In Focus
EUR/USD’s downward trajectory may be at risk following the emergence of a Hammer formation on the daily. However, the bullish reversal pattern lacks the successive up-day required to confirm the signal. Additionally, given the proximity to resistance at 1.3400 a recovery may be a stretch at this stage. This leaves the spotlight on the 1.3320 mark.
EUR/USD: 1.3320 In Focus With Hanging Man Lacking Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Drilling down to the four hour chart; a Morning Star pattern offers a bullish reversal signal in intraday trade. However, as noted above sellers remain prepared to cap the currency’s recovery at the 1.3400 handle. This casts doubt over the potential for a sustained bounce for the Euro.
EUR/USD: Morning Star Fails To Find Follow-Through With Resistance Nearby
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Market Analyst, DailyFX
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here.
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.
original source
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.