Currently, the attitude towards the currency pair remains bearish, as earlier on the day-chart the combination In-Neck was formed, signaling the continuation of the downfalling movement.
This model of candlesticks shows that the currency pair has made a strong decline from the level of 1,3105 after it was not able to break through this resistance level. Further on, reaching 1.2232, the EUR/USD pair recoiled upwards, but it could not close higher than the middle of the yesterday’s candlestick which is a bearish signal.
However, yesterday a white candlestick was developed which devours totally the candlestick of the previous day. Nevertheless, at the moment we should keep the short positions open, but if the pair gets through the resistance level of 1.2445, the combination of candlesticks “Bullish Engulfing with Hammer” will set thus targeting the pair to 1.3105.
On a 4-hour frame the candlesticks give a bearish signal, as the combination of candlesticks “Dark Cloud Cover” has been set after EUR/USD has not managed to break through the resistance level around 1.2445. At the moment it is better to expect the decline to 1.2142. Nevertheless, if the currency pair changes the direction and breaks the resistance level 1.2445, short position should be closed. (see the figure)
