EUR/USD Slide Grinds To A Halt As A Doji Candle Denotes Indecision


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Talking Points

  • EUR/USD Technical Strategy: Shorts Preferred
  • Doji Candlestick Highlights Hesitation
  • Close Below 1.2660 To Open Run On 1.2250

EUR/USD has managed to regain its footing as a Doji formation on the daily suggests indecision from traders. Yet key reversal candlesticks signals for the pair are still missing which in turn casts some doubt over a rebound. Some buying interest appears evident near 1.2650/60. If broken the stage would be set for an extended decline to the late August 2012 low at 1.2250.

EUR/USD: Bears Take A Breather As A Doji Emerges

EUR/USD Slide Grinds To A Halt As A Doji Candle Denotes Indecision

" style="text-align:justify"> Daily Chart - Created Using FXCM Marketscope 2.0 Volume Indicator Available Here

Turning to the four hour chart for an examination of intraday price action reveals a sideways drift between 1.2665 and 1.2710. Alongside the medley of short body candles and Dojis a clear directional bias is lacking. This leaves a break of the narrow trading band desired before making a move on the pair.

EUR/USD: Awaiting Breakout From Congestion Zone

EUR/USD Slide Grinds To A Halt As A Doji Candle Denotes Indecision

4 Hour Chart - Created Using FXCM Marketscope 2.0 Volume Indicator Available Here

By David de Ferranti Currency Analyst DailyFX

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