Tanalys

Forex Strategy: EUR/USD Hanging Man Suggests Declines To Continue

Talking Points

The EUR/USD daily chart is warning of a reversal following the formation of a Hanging Man candle which has received confirmation from a pursuing down-day. A break below support near the 23.6% Fib Retracement level at 1.3832 may open up fresh declines towards the 1.3765 mark.

EUR/USD: Hanging Man Recieves Confirmation

Daily Chart – Created Using FXCM Marketscope 2.0

Drilling down to a four hour chart; intraday support rests just above the psychologically significant 1.3800 handle. However, a bullish reversal signal remains absent, which suggests intraday gains may be limited.

EUR/USD: Intraday Gains Limited As Reversal Signal Absent

4 Hour Chart – Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, FXCM

Follow David on Twitter: @Davidde

To receive David’s analysis directly via email, please sign up here.

Exit mobile version