Tuesday, October 28, 2014

EUR/USD Bullish Candlestick Formation Delivers Further Gains




Talking Points



  • EUR/USD Technical Strategy: Sidelines Preferred


  • Rise Continues Following Morning Star Pattern


  • Doji On H4 Suggests Fading Upside Momentum


EUR/USDhas tapped the 1.2755 barrier after a Morning Star signaled a return of the bulls. Clearance of the nearby ceiling amid a void of bearish candlesticks would open a revisit of the 1.2850 peak. However, the past several weeks have witnessed a more general consolidation for the pair suggesting further follow-through may be difficult.



EUR/USD: Awaits Clearance Of 1.2755 Amid Void Of Bearish Reversal Signals


EUR/USD Bullish Candlestick Formation Delivers Further Gains


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



A Doji on the four hour chart may already be signaling fading momentum from the bulls. However, the candlestick formation is not classed as a key reversal pattern – which in turn casts doubt on a potential correction.



EUR/USD: Doji Signals Hesitation From The Bulls


EUR/USD Bullish Candlestick Formation Delivers Further Gains


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



By David de Ferranti, Currency Analyst, DailyFX



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EUR/USD Bullish Candlestick Formation Delivers Further Gains

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