Tanalys

EUR/USD Trapped In Trading Band As Dark Cloud Cover Offers Warning

Talking Points

EUR/USDremains trapped in a trading band between 1.2500 and 1.2755 with a Dark Cloud Cover formation warning of a retest of the recent lows. A close below the nearby floor would be required to open the next leg lower to the late August 2012 low at 1.2250.

EUR/USD: Dark Cloud Cover Warns Of Weakness Sub 1.2755

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

A string of Dojis in intraday trade signaled reluctance from the Euro bears to lead the common currency lower. Yet key reversal candlesticks remain lacking, leaving limited guidance over the session ahead.

EUR/USD: Dojis Highlighted Hesitation Near Session Lows

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

By David de Ferranti, Currency Analyst, DailyFX

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