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EUR/USD Impressive Turnaround Produces Bullish Engulfing Formation

Talking Points

EUR/USD’s dramatic rebound has left a Bullish Engulfing formation in its dust. Alongside the climb above 1.2755 signs of a short-term uptrend may be emerging. A leap over the next hurdle at 1.2850 would be required to open an advance on 1.2850.

EUR/USD: Rebound Produces Bullish Engulfing Pattern

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

The Euro bulls are showing signs of hesitation as highlighted by a Dragonfly Doji near 1.2820. Yet the sign of indecision may not be sufficient to warn of an intraday correction from the pair. The next upside hurdle rests at the 1.2886 mark.

EUR/USD: Doji Formation Signals Reluctance Following Recent Run

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

By David de Ferranti, Currency Analyst, DailyFX

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