Talking Points
- EUR/USD Technical Strategy: Sidelines Preferred
- Dojis signal hesitation by the bears near critical support
- Absence of bullish signals casts doubt on a recovery
EUR/USD continues to tease traders at the critical 1.3500 support level. A couple of Doji candlesticks highlight hesitation from the bears to push the pair lower yet do not constitute key reversal patterns. The absence of a bullish candlestick signal casts doubt on the potential for the Euro to recover. Sellers are likely sitting at the 1.3590 mark, while a break below 1.3500 could see buyers emerge at the psychologically-significant 1.3400 handle.
EUR/USD: Dojis Denote Indecision Near Key Support Level
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Drilling down to the four hour chart; a Dragonfly Doji near 1.3505 provides further evidence of indecision amongst traders near the support level. With reversal signals missing a push towards intraday resistance at 1.3585 over the session ahead looks doubtful.
EUR/USD: Absence of Key Reversal Patterns Casts Doubt On A Recovery
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Market Analyst, DailyFX
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