FX.co ★ The candlestick analysis of the EUR/USD for 03/11/2010

At 4-hour graph, the EUR/USD currency pair is trading in the range 1.4080-1.3696. Nevertheless, the viewpoint on the currency pair remains bearish. As it was mention before, in case the support level of 1.3696 is broken though the downside movement with the target at 1.3382 is expectable. Earlier on a 4-hour graph the EUR/USD has formed Shooting Star candlestick, which is a bearish signal.
This candlestick formed on the uptrend. Nonetheless, the bears start increasing their influence and a rollback took place near January 2010 high.
The breakout of the Fibonacci correction level 23.6 and support level 1.3777 confirms this point of view and that the uptrend is breached.
The fact that the combination of candlesticks Dark Cloud Cover emerged on a daily graph of the EUR/USD comes in favor of the downwards movement.
On the other hand, if the resistance level of 1.4080 is broken through then short positions should be closed, since it will lead to the upturn to 1.4157.