EUR/USD Probes Above 1.2500 As A Hammer Awaits Confirmation


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Talking Points

  • EUR/USD Technical Strategy: Pending Short
  • Hammer Formation Awaiting Confirmation
  • Piercing Line On H4 Offered Early Bounce Hint

EUR/USD’s intraday recovery has left a Hammer formation in its path. Critically the key reversal signal awaits validation from a successive up-period to be confirmed and to suggest a more sustained advance. A close above the psychologically-significant 1.2500 handle would further hint at a base. Whereas a close below the barrier would skew the risks to the downside towards the late August ’12 lows near 1.2250.

EUR/USD: Hammer Candlestick Emerges After Intraday Recovery

EUR/USD Probes Above 1.2500 As A Hammer Awaits Confirmation

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

A Piercing Line pattern on the four hour chart offered an indication that the bears were losing their grip on prices. With bearish formations now seemingly lacking a correction over the session ahead is questionable. Yet the scope for an advance may also be limited given the proximity of prices to the nearby 1.2550 ceiling.

EUR/USD: Piercing Line Signaled Fading Downside Momentum

EUR/USD Probes Above 1.2500 As A Hammer Awaits Confirmation

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

By David de Ferranti Currency Analyst DailyFX

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