Whoa, look at that awesome setup on the daily chart of EUR/USD! The pair, after it had retraced its losses and climbed to 1.3500, suddenly staged a major drop yesterday! Is this a sign that the downward trend is about to resume? I sure do think so, especially since a shooting star candlestick followed by bearish maruzobu has formed right on the 38.2% Fibonacci retracmeent level. A shooting star candlestick pattern is usually considered as a top in an uptrend (in this case, a retracement), while a bearish marubozu indicates that sellers controlled the pair the entire day. Let’s see if sellers have enough juice to take price to former lows at 1.3000!
Check out the channel on USD/JPY’s 4-hour chart! It might not be your everyday Man vs. Wild episode from Discovery Channel, but it’s definitely as action-packed! The pair is playing along a 200-pip channel, and it recently popped up a red candle near the resistance at 84.50. Stochastic is also sporting a sell signal in the overbought region, so watch this one closely and see if it will fall all the way to the 82.50 handle.
I’m seeing a case of a “frenemy” forming in EUR/JPY’s 1-hour chart! The rising trend line that once supported the pair is becoming a resistance, with the last few candles closing below the line and the 111.50 handle. Tune in for any more drama on this pair to see if the bulls can boost the pair all the way to 112.00, or if the bears can finally break the trend line and drag the pair to the 111.00 handle.