Talking Points
- EUR/USD Technical Strategy: Pending Short
- Bearish Engulfing Pattern Casts Risks Lower
- Key Reversal Signals Lacking In Intraday Trade
EUR/USD’s about face has left a Bearish Engulfing formation in its path. The key reversal candlestick may herald a revisit of the 1.2500 lows if confirmed by a successive down-session. A climb over the 1.2755 hurdle would be required to negate a bearish bias.
EUR/USD: Slide Below 1.2620 To Open 1.2500 With A Bearish Pattern In Tow
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals a void of bullish reversal signals which places a question mark over a corrective bounce. However, given the proximity to intraday support, a downside break would be preferred before adopting fresh short positioning.
EUR/USD: Lacking Bullish Signals In Intraday Trade
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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