EUR/USD Left Wanting For Reversal Signals After Cataclysmic Drop

Talking Points

  • EUR/USD Technical Strategy: Shorts Preferred
  • Recovery Questionable In Absence of Bullish Signals
  • H4 Doji Denotes Hesitation Near Intraday Support

EUR/USD’s cataclysmic decline has left an absence of bullish reversal signals in its wake. Within the context of a core downtrend this casts some doubt over the potential for a sustained recovery for the pair. A daily close below the 1.2920 hurdle would set the scene for a run on the July 2013 low near 1.2755.

EUR/USD: Awaiting Turning Signal To Build Recovery Hopes

EUR/USD Left Wanting For Reversal Signals After Cataclysmic Drop

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

The four hour chart reveals a similar narrative to the daily with a void of reversal candlesticks suggesting a strong recovery may prove difficult. However, a Doji formation denotes indecision from traders near the 1.2920 mark. This suggests a corrective bounce over the session ahead should not be precluded.

EUR/USD: Left Wanting For Bullish Reversal Formations

EUR/USD Left Wanting For Reversal Signals After Cataclysmic Drop

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

By David de Ferranti, Currency 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.

This entry was posted in Binary Options Signals Related News and tagged , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *