Talking Points
- Strategy:Short (From 1.2480), Stop: 1.2500 (Daily Close), Target 1: 1.2360, Target 2: 1.2250
- Doji Suggests Reluctance From Traders Sub The 1.2500 Handle
- Intraday Outlook Cloudy Amid Choppy Consolidation On H4 Chart
EUR/USD continues to struggle sub the 1.2500 handle with a Doji on the daily suggesting reluctance from traders. While not a bearish reversal pattern – the proximity of prices to the nearby resistance level suggests the risks may be skewed lower. This in turn leaves shorts preferred with an initial downside target offered by the 1.2360 floor, which if broken would potentially open a run on the 1.2250 mark.
EUR/USD: Doji On The Daily Denotes Indecision From Traders
Daily Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals a choppy consolidation for the Euro in intraday trade. At this stage key reversal patterns are lacking. This leaves a cloudy intraday bias. Yet given the context afforded by the daily a bearish signal would give further weight to a negative outlook for the common currency.
EUR/USD: Consolidation Endures In Intraday Trade
4 Hour Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
Follow David on Twitter: @DaviddeFe
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.