Talking Points
- EUR/USD Technical Strategy: Shorts Preferred
- Harami Candlestick Pattern Awaiting Confirmation
- H4 Chart Offered Early Hint At A Recovery
The Euro bulls may have some hopes for a recovery following the emergence of a Harami pattern on the daily. However, the key reversal pattern awaits confirmation from a successive up period before suggesting a corrective bounce may be on the way. Further, against the backdrop of a prolonged downward trajectory a shift in sentiment may prove slow and difficult to sustain.
EUR/USD: Bullish Reversal Signal Awaiting Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
An early indication of a bounce for EUR/USD was offered by a Bullish Engulfing formation on the four hour chart. An absence of bearish reversal patterns casts some doubt on the potential for a correction over the session ahead. However, sellers sitting at the psychologically-significant 1.3300 handle are likely to slow the pair’s ascent.
EUR/USD: Bullish Engulfing Pattern Yields Intraday Recovery
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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