EURUSD: Evening Star Candle Set To Trigger Further Correction
EURUSD- EUR put in a weekly lower close and printed an evening star candle formation(top reversal signal) to close at 1.4481 at the end of the week. Though still retaining its bullish medium term structure, the formation of this pattern on the back of its previous week failure at the 1.4844 level has now posed a threat of further downside with its MT rising trendline currently at 1.4424/ the 1.4446 level, its Aug 09 high being aimed at. A combination of these two levels should provide support thereby turning the pair higher again. A setback below there if it materialize will turn focus to the 1.4176 level where its Sept 01’09 low is located. Its weekly RSI now turning lower is supportive of this view. However, on a build on its Friday recovery high, EUR should head towards the 1.4711 level, its Sept 28’09 high followed by its YTD high at 1.4844. Above the latter will resume the pair’s medium term uptrend and put it on the path to further upside gains towards the 1.4875 level, representing its Sept 21’09 high ahead of the its psycho level at 1.5000 and then the 1.5082 level, its Aug 10’08 high. Overall, retaining its bullish medium term outlook, EUR is faced with downside pressure having lost momentum at the 1.4844 level.
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