EUR/USD candlestick analysis for April 5, 2011

EUR/USD pair is rolling back after it failed to test the 1.4278 resistance level. As mentioned before, a break of this level will target the pair to 1.4577. Earlier in the intraday chart EUR/USD shaped a Bullish Engulfing candlestick combination which is an explicit signal to growth.

Such a candlestick combination points to the growth of the pair for several weeks. However, there was a rollback registered at the 1.4035 level which was a good opportunity to start buying.
Further upside movement is supported by the fact that the uptrend remains.
The break of 1.4035 resistance level proves this viewpoint. Now we should expect an upside movement to 1.4278 resistance level.
It is worth mentioning that stop loss orders should be placed slightly below 1.4016 as a break of this level will denote that the uptrend is broken.

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