EUR/USD Candlesticks and Ichimoku Analysis
EUR/USD – 1.4379
| Last Candlesticks pattern | Time of formation | Trend bias | |
| Weekly | Morning star | 01 Mar 2009 | Up |
| Daily | Doji | 04 Aug 2009 | Up |
The single currency fell again last week as expected and reached our indicated downside target at 1.4282 (38.2% Fibonacci retracement of 1.2885-1.5145), however, euro stayed above the flat ground Ichimoku cloud top (now at 1.4184) and has recovered, suggesting consolidation with mild upside bias would be seen for rebound to the Kijun-Sen (now at 1.4489), however, price should falter below the Tenkan-Sen (now at 1.4682 and should act as resistance line), bring another decline probably in January 2010.
On the downside, below last week’s low at 1.4218 would bring test of the flat ground Ichimoku cloud top (now at 1.4184), break there would bring stronger retracement of recent upmove to 1.4015 (50% Fibonacci retracement 1.2885 to 1.5145), however, downside is likely to be limited to 1.3801 (50% Fibonacci retracement of 1.2457-1.5145) and support at 1.3739-47 (previous resistance turned support) would hold and bring another rebound later.
On the daily chart, the single currency finally recovered after tumbling to 1.4218 last week, suggesting a temporary low has possibly been formed, however, a daily close above the Tenkan-Sen (now at 1.4452) is needed to confirm and bring correction of recent selloff to 1.4501 (50% Fibonacci retracement of 1.4783 to 1.4218) and then to 1.4562 (50% Fibonacci retracement of 1.4906 to 1.4218) and price should falter below 1.4626 (previous support turned resistance), bring another decline later.
On the downside, whilst pullback to 1.4290/00 cannot be ruled out, as long as support at 1.4218 holds, prospect of another corrective rebound remains for gain to aforesaid upside targets. Only break of 1.4218 would signal recent selloff from 1.5145 top has once again resumed and extend weakness to next support at 1.4177 and possibly towards 1.4045, however, reckon support at 1.4007-15 (previous support and 50% Fibonacci retracement of 1.2885-1.5145) would hold and bring rebound later.
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