The EUR/USD currency pair slightly declined from the mark of 1.3950. However, the viewpoint on the currency pair remains bearish. As it was mentioned before in case the support level of 1.3696 is broken through, the downside motion with the target at 1.3382 is expected.
On a 4-hour graph, the EUR/USD has formed Shooting Star candlestick that is a bearish signal.
This candlestick emerged on the uptrend. Nonetheless, the bears started to increase their influence and a rollback happened near January 2010 low.
A breakout of Fibonacci correction level 23.6 and support level of 1.3777 means that the uprising trend is broken through, as well as confirms this point of view.
On a daily graph, the EUR/USD pair formed the combination of candlesticks Dark Cloud Cover that comes in favor of downwards movement.
Moreover, a pattern “Head-And-Shoulders” is, probably, forming on 4-hour graph. The breakthrough of the “neckline” will confirm this fact.
In case the resistance level of 1.4079 is breached, the short positions should be cut, since it will lead to increase to 1.4157.
