EUR/USD Might Start Falling

The EUR/USD sideways consolidation continues for now, last Friday the pair tested the support at 1.1160 once again before bouncing off from it, but that sideways consolidation had an expected consequence – the pair formed a very distinct shooting star candlestick on the weekly time-frame, right under the resistance at 1.1270. Such a candlestick is a very telling signal that once that sideways consolidation ends there could be a further move to the downside. Should that happen and if there is a breakout below the aforementioned support at 1.1150 EUR/USD will likely continue falling towards 1.1100, which is the closest support level and it coincides with the (MA)89 indicator on the four-hour time-frame. A breakout below that level will probably lead to a further drop towards 1.1060, which is the same indicator, but on the weekly time-frame.

AUD/USD Bounced off from 0.7515

AUD/USD has been moving to the upside in a rather choppy manner for the past two weeks now, rising with a little less than 200 pips – from 0.7330 to 0.7515. That move to the upside appears to be finally over though, because the pair found a serious resistance at 0.7515, which coincides with the (MA)89 indicator on the daily time-frame. What is more, AUD/USD also formed several very telling signals for an impending move to the downside at that level. First of all, there is an obvious double top at 0.7515. Second, there is also a shooting star candlestick as well as a hanging man candlestick on the daily time-frame below the same resistance level. The first target of that drop is likely 0.7450 and the pair has almost reached it. A breakout below that support could eventually lead to another test of the previous low at 0.7330.

EUR/USD Began a Wider Consolidation

The fundamentals yesterday did eventually push the EUR/USD pair to break out above its tight sideways consolidation above the support at 1.1175, but the move to the upside ended up being rather short-lived, because the pair could not even reach the previous high at 1.1267 and bounced off from 1.1250 after forming a very obvious spinning top candlestick on the four-hour time-frame. Currently EUR/USD is still moving to the downside and it will likely reach the support at 1.1175 once again, indicating that it has begun a wider sideways consolidation between 1.1160 and 1.1270. The continuation of the movement in either direction depends on the pair breaking out either above that support or that resistance.