Wednesday, 4 May 2016

EUR/USD: Is This the End of the Rally?





After EUR/USD broke above 1.1500, the pair continued moving to the upside until it eventually reached the resistance level at 1.1615 and bounced off of it, forming an almost textbook example of a shooting star candlestick on the daily time-frame below the aforementioned resistance level. Since such candlesticks indicate price tops and reversals, the question now is whether this is the end of the rally for EUR/USD. That is quite possible indeed, and if the pair starts moving to the downside again, its first target will be around the support at 1.1350, and a possible breakout below that level could lead to a further drop to the next support level at 1.1200.

3 comments:

  1. It can be! All now depends on the non-farm payrolls number tomorrow.

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  2. I agree, that was a very obvious signal that the pair would start falling.

    ReplyDelete
  3. The pair remains directionless.

    ReplyDelete