EUR/USD Bearish Candlestick Pattern Forms Near Key Support

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

Talking Points

  • 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

EUR/USD Bearish Candlestick Pattern Forms Near Key Support

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

EUR/USD Bearish Candlestick Pattern Forms Near Key Support

4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

By David de Ferranti, Market Analyst, DailyFX

Follow David on Twitter: @Davidde

To receive David’s analysis directly via email, please sign up here.

Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.

Related Forex Analysis
  1. EUR/USD Risks Larger Rebound on Dismal U.S. Durable Goods Orders
    Forex News

    EUR/USD Risks Larger Rebound on Dismal U.S. Durable Goods Orders

  2. EUR/USD stuck below 1.2500
    Forex News

    EUR/USD stuck below 1.2500

  3. EUR/USD Struggles Sub 1.2500 With Bullish Signals Absent
    Forex News

    EUR/USD Struggles Sub 1.2500 With Bullish Signals Absent

  4. Dollar and Yields Slide Despite Improved US Data
    Forex News

    Dollar and Yields Slide Despite Improved US Data

  5. EUR/USD: Firmer foundation to buy dips after 1.2445 breakout
    Forex News

    EUR/USD: Firmer foundation to buy dips after 1.2445 breakout

Trading Center