- EUR/USD Technical Strategy: Shorts Preferred
- Hesitation Persists As Highlighted By Dojis Near 1.3100
- Recovery Questionable In Absence of Bullish Signals
EUR/USDremains at a crossroads as parade of Dojis highlights indecision near the critical 1.3100 floor. A daily close below the hurdle would set the scene for a run on the psychologically-significant 1.3000 handle.
EUR/USD: Doji Highlights Indecision Near Critical Support
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals a similar narrative to the daily with several short body periods denoting hesitation from traders. Yet a void of bullish reversal candlesticks casts doubt on a recovery at this stage. Given the context afforded by the daily clearance of the 1.3100 handle would be preferred before looking at new short positions.
EUR/USD: Absence of Reversal Patterns Casts Doubt On A Corrective Bounce
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency 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.