Friday 17 October 2014

Is This The End of the EUR/USD Correction?




EUR/USD formed a hanging man candlestick pattern in the daily filter chart, which is usually a signal for reversal. Also, there is a pretty strong resistance around 1.2840 – 1.2850, which is exactly where this hanging man candlestick is. So the question is whether this is the end of the correction and EUR/USD will start descending again, or will it break above the resistance level at 1.2840 to head for target 1.2900. For me this hanged man candlestick is a pretty strong warning not to start buying again and in a combination with the resistance at 1.2840 a reliable enough signal to start selling.

6 comments:

  1. EURUSD continues to consolidate above its 10-day moving average in a very mixed fundamental environment. We have markets trying to simultaneously process an apparent global slowdown (and its rate implications), good employment statistics (in the US), and risk aversion due to a variety of economic and political concerns.

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  2. Good question. Seems lacking in strength to continue to climb.

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  3. It could be the end, but it all depends on how the European fundamentals keep coming out.

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  4. I guess we will have to wait and see on monday

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