Friday, October 31, 2014

EUR/USD Remains At Risk With Bearish Engulfing Pattern In Tow




Talking Points



  • EUR/USD Technical Strategy: Pending Short


  • Bearish Engulfing Pattern Casts Risks Lower


  • Key Reversal Signals Lacking In Intraday Trade


EUR/USD’s woes may be set to continue after a Bearish Engulfing formation was left in its wake. The key reversal candlestick may herald a revisit of the 1.2500 lows following confirmation from a successive down-session. A climb over the 1.2755 hurdle would be required to negate a bearish bias.



EUR/USD: Slide Below 1.2620 To Open 1.2500 With A Bearish Pattern In Tow


EUR/USD Remains At Risk With Bearish Engulfing Pattern In Tow


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



The four hour chart reveals a void of bullish reversal signals which places a question mark over a corrective bounce. However, given the proximity to intraday support, a downside break would be preferred before adopting fresh short positioning.



EUR/USD: Lacking Bullish Signals In Intraday Trade


EUR/USD Remains At Risk With Bearish Engulfing Pattern In Tow


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 Remains At Risk With Bearish Engulfing Pattern In Tow

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