EUR/USD Eyes 1.3500 Handle With Bullish Reversal Candlesticks Absent

By DailyFx | July 16, 2014 AAA

DailyFX.com -

Talking Points

  • EUR/USD Technical Strategy: Shorts Preferred
  • Absence of key reversal patterns casts doubt on recovery
  • Break of 1.3590 sets the stage for a drop to 1.3500

EUR/USD has cracked key support at 1.3590 with a void of bullish candlesticks casting doubt on a potential recovery for the pair. This puts the 1.3500 handle where buyers may look to step in to support the currency.

EUR/USD: 1.3500 On The Cards Following Break Of Key Support

EUR/USD Eyes 1.3500 Handle With Bullish Reversal Candlesticks Absent

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

Drilling down to the four hour chart observable candlestick reversal patterns are seemingly absent. This makes an intraday recovery for the pair questionable. 1.3520 could slow the Euro’s decline on the way to the critical 1.3500 level.

EUR/USD: Absence of Reversal Patterns Opens Further Declines

EUR/USD Eyes 1.3500 Handle With Bullish Reversal Candlesticks Absent

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.

comments powered by Disqus
Related Forex Analysis
  1. Weekly Trading Forecast: FX Traders Prepare for Heavy Volatility on FOMC, GDP and ...
    Forex News

    Weekly Trading Forecast: FX Traders Prepare for Heavy Volatility on FOMC, GDP and ...

  2. Trading Video: EURUSD Traders Buckle Up for FOMC, ECB Stress Tests, Risk Trends
    Forex News

    Trading Video: EURUSD Traders Buckle Up for FOMC, ECB Stress Tests, Risk Trends

  3. US Session recap: USD consolidation ahead of FOMC
    Forex News

    US Session recap: USD consolidation ahead of FOMC

  4. A market in a technical snap-shot - RBS
    Forex News

    A market in a technical snap-shot - RBS

  5. EZ gave mixed data at key timings - BBH
    Forex News

    EZ gave mixed data at key timings - BBH

Trading Center