Monday, August 1, 2011

EUR/USD Candlestick Technical Analysis - August 1, 2011

Earlier in a weekly graph the EUR/USD formed Dark Cloud Cover candlestick combination indicating downside movement confirmed further.

This combination shows that the pair dropped sharply after an attempt to advance to the resistance level 1.4700, which means that the bears started to increase their influence.

Further decline is supported by the RSI indicator demonstrating a rollback from the overbought level 70.0.

Break of the support level 1.3969 will denote that this point of view is correct. In this case we should expect a decline to the support level 1.3427 where the Fibonacci correction level 50.0 is also located.

It is worth mentioning that stop loss should be placed slightly above the resistance level 1.4700 as its break will target the pair to 1.4900.

Performed by Vladimir Donin, Analytical expert
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