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.

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    EUR/USD below 1.1500 moving in to consolidation - BTMU

  2. Forex News

    IMF Lagarde considers Grexit is a possibility

  3. Forex News

    EUR/USD back to square one, immune to data

  4. Forex News

    EUR/USD could re-visit 1.1020 – BBH

  5. Forex News

    EUR/USD turns negative below 1.0900

Trading Center