EURUSD – Shooting Star dominates
5th May 2016
…A bearish Shooting Star pattern dominates EURUSD
Tuesday saw the gains from last week’s low extend aggressively and prices reached the most positive levels for 9 months.
But these extremes, and overbought extremes, were sharply rejected despite the prior hugging of the top of the Keltner channel.
That upside rejection created a Bearish Shooting Star pattern on daily EURUSD candle charts *. Naturally confirmation was needed in the next day’s price action and although an almost unchanged close was recorded, the lower high and lower low was enough to give credence to the formation.
Today’s selling is also confirming a more negative bias that has potential to see the currency pair test last Friday’s Marabuzo line and the 13 day moving average which currently coincide at 1.1400.
Below that point we’re looking at the 1.1296/1344 area for EURUSD.
*not a perfect shooting star but textbook candle patterns are a rarity in FX trading and so some flexibility is needed.
