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

By DailyFx | Updated 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.

Related Forex Analysis
  1. Forex News

    EUR/USD fails to regain 1.2500

  2. Forex News

    EUR/USD eyes 1.2500 after CPI

  3. Forex News

    EUR/USD regains 1.2480 and beyond

  4. Forex News

    USD bulls taking a breather? – Rabobank

  5. Forex News

    Yesterday’s low is today’s support for EUR/USD – FXStreet

Trading Center