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EUR/USD Bulls Lose Steam As Dark Cloud Cover Pattern Emerges

DailyFX.com -

Talking Points

  • EUR/USD Technical Strategy: Sidelines Preferred

  • Dark Cloud Cover Pattern Awaiting Confirmation

  • Correction Questionable Amid Lack Of Bearish Signals

EUR/USDappears caught in a congestion ‘zone’ near 1.2700 as a Dark Cloud Cover candlestick formation awaits confirmation. While a Piercing Line pattern signaled a potential shift in sentiment the bulls have thus far been reluctant to charge. Some selling pressure is evident at the 1.2755 mark, which if broken may open an advance on the 1.2850 ceiling.

EUR/USD: Recovery Stumbles Near 1.2755 Barrier

EUR/USD Bulls Lose Steam As Dark Cloud Cover Pattern Emerges
EUR/USD Bulls Lose Steam As Dark Cloud Cover Pattern Emerges

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

The Euro has slipped back within the 1.2500 and 1.2700 band as a string of Dojis highlight hesitation from the bulls in intraday trade. Yet amid a void of key reversal patterns a pullback over the session ahead is questionable.

EUR/USD: Slips Back Into Congestion Zone With Dojis Signaling Hesitation

EUR/USD Bulls Lose Steam As Dark Cloud Cover Pattern Emerges
EUR/USD Bulls Lose Steam As Dark Cloud Cover Pattern Emerges

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

By David de Ferranti, Currency Analyst, DailyFX

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