EUR/USD Candlesticks and Ichimoku Analysis
|
Last Candlesticks pattern |
Time of formation |
Trend bias |
| Weekly |
Morning star |
01 Mar 2009 |
Up |
| Daily |
Doji |
04 Aug 2009 |
Up |
The single currency extended recent decline from 1.5145 as expected in our previous update and easily met our indicated downside targets at 1.3801 (50% Fibonacci retracement of 1.2457-1.5145) and 1.3739-47 (previous resistance turned support). Although further weakness towards 1.3500 is likely, oversold condition should prevent sharp fall below there and reckon 1.3405 (61.8% Fibonacci retracement of entire rise from 1.2329 to 1.5145) would remain intact, yield strong rebound later.
On the upside, expect recovery to be limited to 1.3851 (previous support turned resistance) and bring one more fall to aforesaid downside target. However, only a weekly close above resistance at 1.4027 would signal a low has been formed and bring stronger rebound towards 1.4218 (another previous support) and then to the Tenkan-Sen (now at 1.4246) but the Kijun-Sen (now at 1.4366) should remain intact.
On the daily chart, the single currency met renewed selling interest at 1.4027 as expected (we suggested recovery to be limited to previous support at 1.4029) and resumed recent decline from 1.5145, then reached our indicated downside target at 1.3747-48 and 1.3653 (100% projection of 1.5145 to 1.4218 measuring from 1.4580). Although one more fall below Friday's low at 1.3585 cannot be ruled out, oversold condition should limit downside to 1.3500 and reckon 1.3405 (61.8% Fibonacci retracement of entire rise from 1.2329 to 1.5145) would hold, bring strong rebound later.
On the upside, a daily close above 1.3851 (previous support turned resistance) would suggest low has possibly been formed and bring test of the Tenkan-Sen (now at 1.3882), however, only breach of the Kijun-Sen (now at 1.4083 and this would also penetrate resistance at 1.4027) would confirm, then stronger retracement of recent decline to 1.4218 would follow later.
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