Talking Points
- Strategy:Short (From 1.2480), Stop: 1.2500 (Daily Close), Target 1: 1.2360, Target 2: 1.2250
- Lacking Bullish Signals On The Daily Near Key Floor
- H4 Chart Offered An Early Hint At An Intraday Bounce
EUR/USD has continued its cautious ascent in recent trade. Yet a lack of key bullish reversal patterns makes a more sustained recovery questionable. Sellers may look to keep the pair capped below the psychologically-significant 1.2500 handle. This in turn suggests current levels may offer a fresh short opportunity. An initial downside target is offered by the 1.2360 floor, which if broken would potentially open a run on the 1.2250 mark.
EUR/USD: Rebound May Struggle To Find Further Momentum
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart already reveals signs of hesitation from the bulls in the form of a pair of Doji candlesticks. Yet with more definitive reversal signals absent the potential for a pullback is questionable.
EUR/USD: Dojis Signal Reluctance From The Bulls
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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