FX.co ★ Candlestick analysis of EUR/USD for 23/07/2010

Presently, the EUR/USD currency pair is retracing from 1.2732.
On a 4-hour chart of EUR/USD, “Shooting Star’ candlestick has developed earlier, which signals about a drop, which has been confirmed thereafter.
This candlestick shaped after the pair had pulled back from 1.3027. “Shooting Star” formation provided a good possibility to open with short positions.
The breakout of Fibonacci correctional level of 23.6 will prove that this viewpoint is correct one. In this case, a fall to 1.2478 should be expected, where the major support level and Fibonacci correctional level of 50.0 are positioned.
On the other hand, if the currency pair moves upwards to 1.3027, then short positions opened before are better to close, as the breach of this mark will aim EUR/USD at 1.3350.