- EUR/USD Technical Strategy: Short Pending
- Support-turned-resistance at 1.3590 may cap recovery
- Bullish engulfing formation signaled return of buyers
The Euro bulls are staging a return as the currency recovers some lost ground following a failure to break 1.3500. However, the extent of a bounce may prove limited, given resistance is hanging nearby at 1.3590 and bullish reversal candlesticks remain absent.
EUR/USD: Recovery May Prove Limited
Daily Chart - Created Using FXCM Marketscope 2.0
Examining the four hour chart, the appearance of a second Bullish Engulfing formation near 1.3520 was enough to stir buyers and send EUR/USD on a run towards 1.3585. The emergence of a bearish reversal pattern near the notable resistance level would be seen as a new opportunity to enter shorts.
EUR/USD: Bullish Engulfing Pattern Reinvigorates Buyers
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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