EUR/USD Bullish Candlestick May Struggle To Find Follow-Through

Talking Points

  • EUR/USD Technical Strategy: Shorts Preferred
  • Bullish Engulfing Emerges Following Recovery
  • Gains May Be Capped By Nearby Resistance Zone

EUR/USD’s recent recovery has yielded a Bullish Engulfing pattern which suggests the potential for further gains if confirmed by a successive up-day. However, skepticism over a sustained push higher is warranted given noteworthy the congestion overhead (1.3440-1.3500).

EUR/USD: Key Reversal Pattern May Find Limited Follow-Through

EUR/USD Bullish Candlestick May Struggle To Find Follow-Through

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

Drilling down to the four hour chart; a Harami pattern offers a bearish signal for the session ahead. A push past the nearby 1.3390 floor would set the stage for a drop to the 1.3340 barrier.

EUR/USD: Awaiting Push Past Support Following Bearish Candlestick Pattern

EUR/USD Bullish Candlestick May Struggle To Find Follow-Through

4 Hour Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

By David de Ferranti, Market Analyst, DailyFX

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