DailyFX.com -

Talking Points

  • EUR/USD Technical Strategy: Pending Short
  • Daily close below support at 1.3500 to open 1.3400
  • Absence of bullish signals casts doubt on potential bounce

The bulls appear unwilling to relinquish their grip on EUR/USD as the common currency holds above the 1.3500 handle. While several short body candles are suggestive of indecision amongst traders, they do little to suggest a more meaningful bounce at this stage. A daily close below support at 1.3500 would help signal conviction amongst the bears and open up the next psychologically-significant level at 1.3400.

EUR/USD: Signs of Indecision, Yet Too Soon To Suggest A Bounce

EUR/USD Shooting Star Candlestick In Intraday Trade Warns of Correction

Daily Chart - Created Using FXCM Marketscope 2.0

The pullback from 1.3585 in recent trading has resulted in a Shooting Star candlestick pattern on the 4 hour chart. The key reversal signal suggests the potential for a continued retreat, with buyers likely to emerge at the 1.3520 mark.

EUR/USD: Shooting Star Suggests Retreat To Continue

EUR/USD Shooting Star Candlestick In Intraday Trade Warns of Correction

4 Hour Chart - Created Using FXCM Marketscope 2.0

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.

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Trading Video: Dollar Rate View Cools, Risk and Aussie Dollar Look to Carry Banner

  2. Forex News

    EUR/USD print new lows, en-route to 1.09

  3. Forex News

    Standard and Poor’s Rating Downgrades EU Outlook Amidst Sustainability Fears

  4. Forex News

    EUR/USD US session wrap up - FXStreet

  5. Forex News

    EUR/USD retreats from 1.0990, back to 1.0950

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!