EUR/USD Recovers Lost Ground Following Bullish Reversal Pattern

By DailyFx | Updated August 04, 2014 AAA

DailyFX.com -

Talking Points

  • EUR/USD Technical Strategy: Sidelines Preferred
  • Hammer Candlestick Offered Bullish Reversal Signal
  • Daily Close Above 1.3440 Required To Open 1.3500

EUR/USD’s recovery may continue following the confirmation of a Hammer candlestick formation on the daily. A close above the nearby 1.3440 barrier would open a run on the psychologically-significant 1.3500 handle. However, some skepticism for further gains may be warranted given the prevailing trend remains to the downside.

EUR/USD: Hammer Yields Corrective Bounce

EUR/USD Recovers Lost Ground Following Bullish Reversal Pattern

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

Drilling down to the four hour chart; a Harami pattern has failed to yield a meaningful correction for EUR/USD. Several ensuing short body candles suggest noteworthy deliberation amongst traders, which does little to confirm a technical bias for the pair.

EUR/USD: Short Periods Highlight Indecision Above 1.3400

EUR/USD Recovers Lost Ground Following Bullish Reversal Pattern

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

    Weekly Trading Forecast: Dollar Hits a Record Before the ECB Weighs Further QE

  2. Forex News

    Strategy Video: Don’t Be Lulled by the Comfort of Consensus

  3. Forex News

    Beware Risk Trends as Traders Question Oil Market’s Implications

  4. Forex News

    EUR/USD trading end of November with mixed forward outlook - Scotiabank

  5. Forex News

    ECB: “What does T-LTRO 1 take-up mean?” - Rabobank

Trading Center