- EUR/USD Technical Strategy: Longs Preferred
- Dojisignaled hesitation by the bears near critical support
- Sellers likely to re-emerge at the 1.3700 handle
EUR/USD is powering higher after a Doji on the daily near key support at 1.3590 signaled a potential shift in sentiment amongst traders. With a strong up session underway, the close of the candle would yield a more noteworthy signal of a reversal in the form of a Morning Star pattern. Sellers are likely to re-emerge at the psychologically-significant 1.3700 handle.
EUR/USD: Doji Signaled Indecision Near Key Support
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Drilling down to the four hour chart an Inverted Hammer formation offered an early indication of a recovery for EUR/USD. While there remain an absence of bearish patterns, new longs may be better served on a break of 1.3638 given the proximity to the level.
EUR/USD: Inverted Hammer Hinted At Intraday Recovery
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Market Analyst, DailyFX
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