- EUR/USD Technical Strategy: Sidelines Preferred
- Bearish Engulfing pattern awaiting confirmation
- Key level at 1.3590 keeping EUR/USD supported
EUR/USD is left at a critical juncture near key support at 1.3590 with a Bearish Engulfing pattern warning of weakness ahead. Given the formation’s close proximity to support, a downside break and successive down-day would be preferred before looking at new shorts.
EUR/USD: Awaiting Confirmation Of Bearish Signal
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Piercing Line pattern on the four hour chart, which may have hinted at a recovery for EUR/USD failed to find confirmation from a successive up-day. With sellers seemingly capping the pair at the 1.3610 mark, a bounce over the session ahead is questionable.
EUR/USD: 1.3610 Caps Piercing Line Pattern Gains
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Market Analyst, DailyFX
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