On a 4-hour chart of EUR/USD a combination of candlesticks “Bearish Engulfing” has formed earlier, signaling the decrease, which has been confirmed thereafter. This combination of candlesticks developed after the currency pair had recoiled from 1.2141. The development of this combination provided a good opportunity to open short.
Moreover, the fact that the pair broke through the support level of 1.2442 confirms that this viewpoint is correct and we should expect the decline to 1.2295 with a further aim of 1.2141.
For the moment, a testing of the support level around 1.23 is happening. If the pair does not manage to get through it and makes an upward advance to 1,2450, it will be necessary to close the opened before short positions as breaking through 1,2450 will denote the ending of the rebound from 1,2669.
