The EUR/USD pair rallied during most of the session on Wednesday, but failed at the 1.30 level again. The resulting action formed a shooting star for the day, and this of course looks very weak. As you know, we are not particularly fond of the Euro in general, as there are far too many issues involved in it.
However, it cannot be denied that there’s been a slight upward bias over the last several weeks. This candlestick could be the beginning of something kind of ugly though. We wouldn’t sell on a break of the bottom like normal, instead we would actually wait until we see continued follow through. A move below the 1.29 level could be used as a trigger to start selling at that point. After all, that breaks the uptrend line that’s been supporting this market since late September. As for buying, we see far too much noise above 1.30 to be bothered.
Written by FX Empire