Friday, November 28, 2014

EUR/USD Returns Gaze To Recent Lows Amid Void Of Bullish Patterns




Talking Points



  • Strategy:Short (From 1.2480), Stop: 1.2500 (Daily Close), Target 1: 1.2360, Target 2: 1.2250


  • Retreat From 1.2500 Handle May Continue Amid Absence of Bullish Signals


  • Testing Intraday Support With Reversal Candlestick Patterns Lacking


EUR/USD has retreated from the psychologically-significant 1.2500 handle after it was left with little fuel from bullish candlestick patterns. This opens the prospect of a drift towards the recent lows and leaves shorts preferred. An initial downside target is offered by 1.2360, which if broken would potentially open a run on the 1.2250 mark.



EUR/USD: Sellers Return At Psychologically-Significant Handle


EUR/USD Returns Gaze To Recent Lows Amid Void Of Bullish Patterns


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



The four hour chart reveals some intraday buying interest at the 1.2450 mark. Yet with bullish reversal patterns lacking the prospect of a rebound over the session ahead is questionable.



EUR/USD: Bullish Reversal Patterns Lacking Near Intraday Support


EUR/USD Returns Gaze To Recent Lows Amid Void Of Bullish Patterns


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 Returns Gaze To Recent Lows Amid Void Of Bullish Patterns

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