Tuesday, April 29, 2014

EUR/USD Marches Higher As Doji Does Little To Discourage Bulls




Talking Points



  • EUR/USD Technical Strategy: Sidelines Preferred


  • Lack of reversal signal suggests gains may continue


  • 1.3900 likely to act as noteworthy resistance


EUR/USD continues to march towards the critical 1.3900 handle following a break above resistance at 1.3840. While a Long-Legged Doji candlestick on the daily signals some hesitation amongst the bulls it is not enough to suggest a correction at this stage.



EUR/USD: Eyes 1.3900 With Bearish Reversal Signal Absent


EUR/USD Marches Higher As Doji Does Little To Discourage Bulls


Daily Chart – Created Using FXCM Marketscope 2.0



Drilling down to examine intraday price action; the Bullish Engulfing pattern on the 4 hour chart heralded the return of the bulls near key support at 1.3785. Some interim resistance at 1.3875 may prompt some sellers to emerge during the session ahead.



EUR/USD: Recovery May Continue Following Bullish Engulfing Pattern


EUR/USD Marches Higher As Doji Does Little To Discourage Bulls


4 Hour Chart – Created Using FXCM Marketscope 2.0



By David de Ferranti, Market Analyst, FXCM



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EUR/USD Marches Higher As Doji Does Little To Discourage Bulls

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