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Talking Points

  • EUR/USD Technical Strategy: Sidelines Preferred
  • Dojis signal hesitation by the bears near critical support
  • Absence of bullish signals casts doubt on a recovery

EUR/USD continues to tease traders at the critical 1.3500 support level. A couple of Doji candlesticks highlight hesitation from the bears to push the pair lower yet do not constitute key reversal patterns. The absence of a bullish candlestick signal casts doubt on the potential for the Euro to recover. Sellers are likely sitting at the 1.3590 mark, while a break below 1.3500 could see buyers emerge at the psychologically-significant 1.3400 handle.

EUR/USD: Dojis Denote Indecision Near Key Support Level

EUR/USD Dojis Signal Hesitation Near Key Support At 1.3500

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

Drilling down to the four hour chart; a Dragonfly Doji near 1.3505 provides further evidence of indecision amongst traders near the support level. With reversal signals missing a push towards intraday resistance at 1.3585 over the session ahead looks doubtful.

EUR/USD: Absence of Key Reversal Patterns Casts Doubt On A Recovery

EUR/USD Dojis Signal Hesitation Near Key Support At 1.3500

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

By David de Ferranti, Market Analyst, DailyFX

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