The EUR/USD currency pair is moving further downwards. On a daily chart, EUR/USD has set “Dark Cloud Cover” candlestick combination, which is a falling signal, which has been confirmed thereafter.
This combination formed after the pair had rolled back from 1.3333. The “Dark Cloud Cover” formation allowed a good opportunity to open with short positions.
Breakout of 23.6 Fibonacci correctional level means that this viewpoint is correct one. A decline to 1.2476 area should be expected after a breach of 38.2 Fibonacci correctional level and the support level of 1.2737. Fibonacci correctional level of 50.0 is placed at 1.2476 as well.
On the flip side, if the pair breaks through 1.3100, short positions opened earlier should be closed, as breakout of this mark will mean that the pullback is finished and an upward movement to 1.3700 should be awaited.
