Talking Points
- EUR/USD Technical Strategy: Shorts Preferred
- Haramioffered bearish signal near the 1.3950 mark
- Hammer in intraday trade hints at a possible bounce
As noted in yesterday’s candlesticks report the Euro was primed for a drop towards the 1.3670 level of support, which followed the emergence of a Harami pattern near resistance at 1.3950. While a second Harami appears to be forming in intraday trade, the candle is yet to close, which would be required for the bullish to be valid.
EUR/USD: Harami Delivers Dip To Support
Daily Chart – Created Using FXCM Marketscope 2.0
Drilling down to examine intraday price action on the four hour chart; there is some evidence that the EUR/USD bulls are staging a return. The Hammer formation near 1.3692 hints at a possible bounce for the pair in the session ahead. However, gains may be limited, given resistance remains at the nearby 1.3745 mark.
EUR/USD: Hammer Suggests Intraday Bounce
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.