Wednesday, 17 August 2016

EUR/USD Will Likely Retrace




EUR/USD has been very bullish for the past several days as the pair finally broke above the resistance at 1.1200 and continued moving to the upside, eventually reaching a high at 1.1321. That move to the upside, however, might stall temporarily, as the pair bounced off the aforementioned high and while doing so formed a pair of very telling candlesticks on the four-hour time-frame, namely a shooting star and a hanging man. Considering that signal I’d say that it is very likely for EUR/USD to start moving to the downside again, if only temporarily. The first target is probably at 1.1210 – 1.1200, and a breakout below that level could lead to a further drop towards 1.1150, which is (MA)89 on the four-hour time-frame.

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