EUR/USD Candlestick Analysis Suggests Further Falls Ahead

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

Talking Points

  • EUR/USD Technical Strategy: Shorts Preferred
  • Absence of bullish candlestick opens further declines
  • Falls likely to be met by buying support near 1.3500

As suggested in recent EUR/USD candlesticks reports; the Euro was set for further declines in the absence of a bullish reversal pattern. While the pair staged a small recovery to support-turned-resistance at 1.3670, the emergence of another Harami pattern suggests the bears have regained control of prices. Further falls may encounter buying support at the psychologically-significant 1.3500 handle.

EUR/USD: Bears Dominate Following Harami Candlestick Patterns

EUR/USD Candlestick Analysis Suggests Further Falls Ahead

Daily Chart - Created Using FXCM Marketscope 2.0

Drilling down to examine the four hour chart; a Dark Cloud Cover candlestick pattern indicated the bears were wrestling control of prices following a test of 1.3665. With a Bullish Engulfing pattern near 1.3520 finding little follow-through in recent trading, the common currency may struggle to recover ground in the session ahead.

EUR/USD: Traders Look Past Bullish Candlestick Pattern

EUR/USD Candlestick Analysis Suggests Further Falls Ahead

4 Hour Chart - Created Using FXCM Marketscope 2.0

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

Related Forex Analysis
  1. EUR/USD Rebound Vulnerable to Slowing German, Euro-Zone CPI
    Forex News

    EUR/USD Rebound Vulnerable to Slowing German, Euro-Zone CPI

  2. EUR/USD extends gains on weak USD
    Forex News

    EUR/USD extends gains on weak USD

  3. Bullish US Dollar Undermined by Shaky October Durable Goods Orders
    Forex News

    Bullish US Dollar Undermined by Shaky October Durable Goods Orders

  4. EUR/USD hits fresh highs above 1.2500 after US data
    Forex News

    EUR/USD hits fresh highs above 1.2500 after US data

  5. EUR/USD regains 1.2480
    Forex News

    EUR/USD regains 1.2480

Trading Center