EUR/USD Bounced off from 1.1860

EUR/USD reached a high at 1.1860 and bounced off from that level, thereby forming a clear shooting star candlestick on the daily time-frame at the same level. Considering what a strong signal such a candlestick is for a likely move to the downside, the question now is whether the rally will continue. It is possible, of course, for the candlestick to be a signal for a temporary retracement, likely towards the (MA)89 indicator on the daily time-frame at 1.1670, which from a clear resistance would become a support level. A breakout below that support would indicate that the rally has indeed ended and the pair will probably test the last low at 1.1555. The target to the upside was clear when the pair broke out above the aforementioned indicator – 1.2092 which is the previous high.