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Forex Strategy: EUR/USD Shorts Preferred On Shooting Star Confirmation

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Talking Points

The Euro bulls may have lost their hold on EUR/USD as a Shooting Star formation hints at possible weakness ahead for the common currency. The pair erased early gains during the most recent trading session near the psychologically significant 1.3700 handle which continues to act as important resistance.

If we see confirmation of the Shooting Star pattern from some follow-through with another down-day, it may warn of a more significant reversal for EUR/USD towards the 2014 low. A potential target is offered by the 1.3500 handle which would likely prompt some buying support.

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Daily Chart – Created Using FXCM Marketscope 2.0

— Written by David de Ferranti, Market Analyst, FXCM

Contact and follow David on Twitter: @Davidde

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