EUR/USD Keeps Traders In Suspense As Dojis Form Near Key Level

By DailyFx | August 15, 2014 AAA

DailyFX.com -

Talking Points

  • EUR/USD Technical Strategy: Pending Short
  • Doji Candlestick Indicates Indecision Near 1.3340
  • Break Of Nearby Support To Open 1.3100 Target

The Euro continues to keep traders in suspense near the critical 1.3340 floor with several Dojis indicating deliberation amongst traders. At this stage key bullish reversal patterns remain missing which leaves the immediate risk to the downside. Given the proximity to nearby buying support new shorts may be better served on a downside break. This would set the stage for a push to the September 2013 lows near 1.3100.

EUR/USD: Dojis Highlights Hesitation At Critical Support

EUR/USD Keeps Traders In Suspense As Dojis Form Near Key Level

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

An examination of the four hour chart reveals the presence of a more defined range between 1.3340 and 1.3430. Turning points within the corridor have been marked by key candlestick reversal patterns. Based on the context afforded by the daily, shorts near the range-top would be preferred to trying to pick a bottom.

EUR/USD: Reversal Patterns Indicate Turning Points In Intraday Range

EUR/USD Keeps Traders In Suspense As Dojis Form Near Key Level

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. USD/JPY crashes below 106.50, more downside in store
    Forex News

    USD/JPY crashes below 106.50, more downside in store

  2. Trading Video: Is the S&P 500 Rebound, VIX Retreat a Trend or Interlude
    Forex News

    Trading Video: Is the S&P 500 Rebound, VIX Retreat a Trend or Interlude

  3. EUR/USD bulls wake up and drive pair above 1.2800
    Forex News

    EUR/USD bulls wake up and drive pair above 1.2800

  4. Strategy Video: Which is the Better Breakout Candidate - AUDUSD or EURJPY?
    Forex News

    Strategy Video: Which is the Better Breakout Candidate - AUDUSD or EURJPY?

  5. AUD/USD Range Endures With Clearer Cues From Candlesticks Desired
    Forex News

    AUD/USD Range Endures With Clearer Cues From Candlesticks Desired

Trading Center