TechnoMeter

• Strategy: Short, Stop: 1.2500 (Close), Target: 1.2270
• Struggles Below Key Level With Candlestick Signals Lacking
• Shooting Star Signaled An Early Warning For A Retreat

EUR/USD’s consolidation between the 1.2360 and 1.2500 trading band continues, with clear cues from candlesticks lacking. Yet in the context of a medium-term downtrend the pair may be set to revisit the recent lows near 1.2360. Beneath which would put the August 2012 trough at 1.2250 in sight. A close above 1.2500 would be required to negate a short-term bearish technical bias.

Consolidation Endures Amid Void Of Candlestick Patterns



The four hour chart reveals a Shooting Star formation near the 1.2490/1.2500 ceiling. The key reversal pattern flashed an early warning of an intraday retreat, and turns the focus on the range-bottom to 1.2365.

Shooting Star Flashed Early Warning Of An Intraday Retreat



By David de Ferranti, Currency Analyst, DailyFX


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