EUR/USD Harami Pattern Offers Bulls A Sign Of Hope

By DailyFx | Updated August 22, 2014 AAA

DailyFX.com -

Talking Points

  • EUR/USD Technical Strategy: Shorts Preferred
  • Harami Candlestick Pattern Awaiting Confirmation
  • H4 Chart Offered Early Hint At A Recovery

The Euro bulls may have some hopes for a recovery following the emergence of a Harami pattern on the daily. However, the key reversal pattern awaits confirmation from a successive up period before suggesting a corrective bounce may be on the way. Further, against the backdrop of a prolonged downward trajectory a shift in sentiment may prove slow and difficult to sustain.

EUR/USD: Bullish Reversal Signal Awaiting Confirmation

EUR/USD Harami Pattern Offers Bulls A Sign Of Hope

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

An early indication of a bounce for EUR/USD was offered by a Bullish Engulfing formation on the four hour chart. An absence of bearish reversal patterns casts some doubt on the potential for a correction over the session ahead. However, sellers sitting at the psychologically-significant 1.3300 handle are likely to slow the pair’s ascent.

EUR/USD: Bullish Engulfing Pattern Yields Intraday Recovery

EUR/USD Harami Pattern Offers Bulls A Sign Of Hope

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

By David de Ferranti, Currency Analyst, DailyFX

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