EUR/USD Candlesticks and Ichimoku Analysis

Weekly

• Last Candlesticks pattern: Shooting star



• Time of formation: 03 May 2016



• Trend bias: Down

Daily

• Last Candlesticks pattern: Shooting star



• Time of formation: 3 May 2016



• Trend bias: Sideways

EUR/USD – 1.0954

Although the single currency staged a strong rebound from 1.0851 to 1.1143, current retreat suggests consolidation below this level would be seen and initial downside risk is for pullback towards the Tenkan-Sen (now at 1.1008) is likely, however, reckon support at 1.0936 would limit downside and price should stay above 1.0882 and bring another rebound later. Only a drop below 1.0882 would revive bearishness for retest of said support at 1.0851, break there would extend early decline to 1.0822 support and later towards 1.0710 support which is likely to hold on first testing and price should stay well above 2015 low at 1.0523.

On the upside, expect recovery to be limited to 1.1100-10 and Friday’s high at 1.1143 should remain intact, bring further consolidation. Only a firm break above there would extend the rebound from 1.0851 for retracement of early decline towards the upper Kumo (now at 1.1217) but resistance at 1.1279 should limit upside and price should falter below another previous resistance at 1.1327, bring retreat later. 

Recommendation: Hold short entered at 1.1090 for 1.0890 with stop above 1.1145.

 

On the weekly chart, although the single currency surged last week and reached a high of 1.1143, as euro ran into resistance right at the Kijun-Sen and has retreated, suggesting consolidation below this level would be seen and pullback to 1.0985-95 cannot be ruled out, however, break of 1.0936 support is needed to signal the rebound from 1.0851 has ended, bring another fall towards this level. Looking ahead, a break of 1.0822 support is needed to signal early rebound from 1.0523 has ended at 1.1616 and the fall from there is likely to extend further decline to 1.0710 support, having said that, as broad outlook remains consolidative, reckon downside would be limited to 1.0600 and said recent low at 1.0523 should remain intact. 

On the upside, expect recovery to be limited to 1.1100-10 and said last week’s high at 1.1143 should remain intact, bring another retreat. A weekly close above there (this would also penetrate the Kijun-Sen would signal low has been formed at 1.0851, bring a stronger rebound to risk rebound to the upper Kumo (now at 1.1203) but still reckon resistance at 1.1279 would limit upside and price shoudl falter well below another resistance at 1.1366. 

EUR/USD Candlesticks and Ichimoku Analysis