- EUR/USD Technical Strategy: Shorts Preferred
- Harami paved the way for a retreat to 1.3600
- Bounce doubtful in absence of reversal patterns
As noted in recent candlesticks reports EUR/USD was primed for a pullback following a Harami pattern on the daily near noteworthy resistance at 1.3700. Confirmation from a second successive down-day helped to validate the signal and opened a decline to former resistance-turned-support at 1.3590. A daily close below the support level would suggest enough conviction from the bears to achieve the 1.3500 handle.
EUR/USD: Harami Heralded Retreat
Drilling down to the four hour chart; candlestick reversal signals are notably absent for the Euro. While a bounce looks doubtful at this point a break below support at 1.3585 would likely afford a better entry for new short positions.
EUR/USD: Reversal Signals Lacking In Intraday Trade
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.