- EUR/USD Technical Strategy: Shorts Preferred
- Hammer To Offer Bullish Signal If Confirmed
- Downside Risk Remains With 1.3320 In Focus
EUR/USD’s downward trajectory may be at risk following the emergence of a Hammer formation on the daily. However, the bullish reversal pattern lacks the successive up-day required to confirm the signal. Additionally, given the proximity to resistance at 1.3400 a recovery may be a stretch at this stage. This leaves the spotlight on the 1.3320 mark.
EUR/USD: 1.3320 In Focus With Hanging Man Lacking Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Drilling down to the four hour chart; a Morning Star pattern offers a bullish reversal signal in intraday trade. However, as noted above sellers remain prepared to cap the currency’s recovery at the 1.3400 handle. This casts doubt over the potential for a sustained bounce for the Euro.
EUR/USD: Morning Star Fails To Find Follow-Through With Resistance Nearby
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Market Analyst, DailyFX
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